Metals Hit Multi-Month Lows

Metals hit multi-month lows on Friday on concerns about escalating trade tensions after the United States announced tariffs on steel and aluminum imports, Reuters reported. US President Donald Trump’s decision to impose a 25% import tariff on steel and 10% on aluminum, with initial exemptions for Canada and Mexico, is set to take effect within 15 days. China said it “resolutely opposed” the tariffs and that they would “seriously impact the normal order of international trade”, while the EU said it will go to the World Trade Organization to impose its own measures if hit by the tariffs. “The impact of tariffs on metals markets is small, (as is) the impact of the tariffs in terms of US or global GDP. But if the tariffs spark an acceleration in trade restrictions and shave 1 or 2% off global GDP, that’s when they become very problematic,” said Bernstein analyst Paul Gait. International Monetary Fund Managing Director Christine Lagarde said she feared a “tit-for-tat” escalation of trade retaliation that would hurt business confidence and investment.