Steel stocks under pressure on Trump’s steel and aluminium tariffs

Commerce recommended a tariff of at least 53 percent on all steel imports from 12 countries -- Brazil, China, Costa Rica, Egypt, India, Malaysia, Russia, South Korea, South Africa, Thailand, Turkey and Vietnam.

KUALA LUMPUR: Shares in steel related companies came under pressure on Friday after President Donald Trump said the US will implement tariffs on steel and aluminium imports next week.

Companies such as Ann Joo Resources Bhd fell 3.25%, or 12 sen to RM3.57, Southern Steel Bhd declined 2.79%, or 6 sen to RM2.09, Lion Industries Corp Bhd eased 2.24%, or 3 sen to RM1.31 while Malaysia Steel Works (KL) Bhd (Masteel) was down 4.39% or five sen to RM1.09.

Apart from the steel counters, other metal-based counters also came under pressure, such as Press Metal Aluminium Holdings Bhd declining 11 sen, or 1.9%, to RM5.68, while Aluminium Company of Malaysia Bhd fell one sen or 1.25% to close 79 sen.

Trump announced that the US will set tariffs of 25% for steel and 10% for aluminium. It is unclear whether they will apply to all imports or only metals from certain countries.

The Dow Jones industrial average closed 420.22 points lower at 24,608.98 after rising more than 150 points earlier in the day while the S&P 500 declined 1.4% to end at 2,677.67 — erasing its year-to-date gains.