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US aluminum and steel prices are nearing peaks after tariffs begin
After U.S. 25% tariffs took effect, Canada and Europe retaliated by raising the price of aluminum and steel. Since Donald Trump, the U.S. president who ran on a promise of a broad range of duties, took office and began his administration in January 2017, traders have increased prices for industrial metals used by many industries. Trump wants to protect American producers of steel and aluminum by restoring 25% tariffs on all metal imports. He also wants to extend duties to hundreds downstream products. The price of U.S. Metals spiked Tuesday after a heated exchange between U.S. officials and Canadian officials. Trump has promised to double tariffs against its northern neighbor to 50%, after Ontario province responded by increasing duties on electricity exported to the U.S. The two sides then retracted, removing the 50% metals duty and the electricity duty, causing some price increases to be reduced. Tuesday, the U.S. Midwest duty paid aluminium premium for metals soared up to a new record of 45 U.S. Cents per lb, or over $990 per metric ton. This is a jump by nearly 20% compared to the previous session. Later, it fell to 41 cents. It has increased by more than 70% from the beginning of 2025. On Wednesday, the April contract was not yet traded, but May had risen by 1.3% in line with previous records. On the physical market, consumers typically pay a premium for taxes, transportation and handling. Prices have also risen on the steel market. On Wednesday, the price of hot-rolled coils (HRC) in the Midwest jumped to $945 a short ton, an increase of 37% from the end January, and the highest level since February 2024. The cost of aluminium in the United States has risen, but it is down elsewhere because metal will be diverted into other countries. In Europe, duty-paid physical aluminium market premium has fallen to $230 per metric ton. This is the lowest level since January of last year. The price has dropped by more than 35 percent since the beginning of 2025. (Reporting and editing by Eric Onstad)
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Tariffs on green EU products could hurt coal-dependent Western Balkans
EU CO2 tax targets imports that are carbon-intensive Import tax on coal-powered electricity Western Balkan countries seeking exemptions from impact Joanna Gill The EU's carbon border adjustment mechanism will cover coal-fueled electricity, one of the Western Balkans most carbon-heavy products. This will impose a tax on imports that have a high carbon footprint. Janez Kopac - former director of Energy Community Secretariat - explained that the region's economic and geographical ties to the EU were "so immense" that it would be difficult for them to avoid the tariffs. The Energy Community Secretariat brings together the EU, its neighbours and other countries to create a pan-European integrated energy market. Coal accounts for 60% to 95% of electricity generation in the Western Balkans depending on which country you are looking at, and 60% of its exports. Albania, Bosnia and Herzegovina (BiH), North Macedonia (Nord Macedonia), Montenegro and Serbia are located in Southeast Europe and share borders with six EU member states, making them the bloc's main trading partner. Energy analysts believe that the impending eco tariff will encourage the region to invest more in clean energy as it moves towards EU membership. If they don't, the financial consequences could be severe. Kopac said, "They'll adapt sooner or later but it will be rough for them." CARBON CURTAIN The new eco-tariff is going to affect countries in different ways depending on their carbon footprint. CBAM fees on imports to the EU would make electricity exports by Western Balkans costlier. Albania relies mainly on hydropower to limit its exposure. However, Bosnia and Herzegovina could lose over 220 million euro ($231,99 million) per year in revenue due to the sale of electricity to the EU. This is according to CEE Bankwatch - a network consisting of nongovernmental environmental organisations from central and eastern Europe. According to the CBAM readiness tracking tool of the Energy Community, Western Balkans countries' efforts to decarbonise are largely stagnant. Analysts claim that a lack investment in renewable energies and the continued subsidies by governments for coal plants, which are getting older, is preventing a green transition. This has led to governments seeking delays or exemptions under CBAM. The CBAM will not be implemented until the CBAM is fully implemented. This means that countries are unable to implement reforms prior to the CBAM's implementation. She said that there was a growing awareness among countries to decarbonise in order to "escape from the worst impacts." BRACKET FOR IMPACT The social and economic cost of switching from coal to cleaner energy is high. The German clean energy think-tank Agora Energiewende estimates the energy transformation of the Western Balkans to be around 40 billion Euros. This figure does not include retraining and severance payments for approximately 30,000 coal miners. Christian Egenhofer is a senior researcher at CEPS, a Brussels-based think tank, who specializes in energy policy. He said that eco-tariffs, rather than encouraging emigration from coal, could stymie the green transition of the Balkans by removing the cash required to finance the transition. He said, "These people don't need such incentives. They just need money." The EU has a Just Transition Fund worth 17,5 billion euros to protect workers and regions against the economic impact of energy transitions, such as plant closures. Western Balkans does not have such dedicated funding. The EU has provided up to 9 billion Euros to support the green and digital transformation and up to 20 Billion Euros of investment via the Western Balkan Guarantee Facility. This will cover all the reforms required to join the EU, not just the modernisation of energy sectors. Gallop, from CEE Bankwatch, said that the funds "were not enough in volume" to match investment required for a just and fair transition. Kopac said that no matter how much funding the EU provided, the Western Balkans states would still have to provide some of the impetus needed for change. "Perhaps, this is no longer a question that the European Union can answer," he said.
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Andy Home: Bad news for American beer consumers as aluminium tariffs begin to kick in
Here are some good news about aluminium in the United States. President Donald Trump has backtracked on his threat to slap a 50% tariff on Canadian metal imports. The bad news. They will have to pay a 25% tariff on all aluminum products, regardless of where they come from. The market has already changed to reflect Trump's double-down on tariffs in order to revive domestic smelting capacities. CME Midwest Premium, which reflects the cost of unwrought aluminum delivered to an American fabricator above the London Metal Exchange base price, has reached record highs. The premium on aluminium will continue to flow down until it reaches the final user. This could be Ford Motor, Lockheed Martin, or any of the many independent breweries in the country. Tariffs are still the same as they have been and will remain so long as the United States is dependent on imports. HANGOVER TARIFF The original tariffs Trump imposed on aluminum in 2018 were 10%. Within a year, the Beer Institute, a group that represents nearly 8,000 American brewers, estimated the additional $250 million they cost to the industry. Harbor Aluminum, a consultancy, found that 50 million dollars had been sent to the U.S. Treasury. Another 27 million dollars went to domestic smelters. The remaining $173 million was given to fabricators who turn metal into aluminium sheets for beer cans. The Beer Institute was irritated that the import duty was passed on, despite the fact that U.S. cansheets typically contain around 70% recycled material sourced locally. Tariffs usually work in this way. Ask European aluminum buyers. Import tariffs on aluminum range from 3% for primary aluminium up to 6% for some alloys. Researchers at the LUISS university in Rome have studied the impact of the metal duty exemption on consumers. In a paper published in 2019, they found that despite the fact that around half of the imports of the European Union were made up of duty-exempt material, the final price for everyone was 6%. Researchers found that producers are encouraged to "align" their prices at the highest level possible, i.e. the price paid in duty. In 2022, the Beer Institute conducted a follow-up study that confirmed this harsh economic truth. It found that, even after granting exemptions to key suppliers like Canada, beer manufacturers were still required to pay full import tariffs on their can metal. At that point, the cost had reached $1.4 billion. Import Dependency Harbor Aluminum's conclusion that first-stage processing companies have benefited most from tariffs so far reflects the imbalanced nature in the U.S. domestic supply chain. There are many semi-manufacturers in the country, but there are only four primary metal smelters that can supply them. According to the U.S. Aluminum Association, more than 164,000 people are employed directly in the aluminium industry. However, only 4,000 of them are involved in upstream metal manufacturing. These four smelters will produce 670,000 metric tonnes of metal by 2024, while the U.S. is only expected to consume 4.9 million. Imports totaled nearly 4.0 million tonnes, with 70% of that amount coming from Canadian smelters. It is hard to imagine that this dynamic will change anytime soon. Even if the idled smelting capacities of around 1 million tons per annum were to be brought back into production, a huge "if", given the age and cost structures of the four mothballed facilities, there would still be a large import dependency. Century Aluminum has been working on a new smelter for years, but the company still doesn't have a reliable source of power at a competitive price to fuel the electrolysis process. Tariffs will continue determining the final price for American buyers as long as imports are needed to meet the domestic demand. Uncertainty in Trading As the markets discovered on Tuesday, Trump can raise tariffs at his whim. The fluctuating tariff rhetoric causes volatility in the CME U.S. Premium, which briefly rose to almost $1,000 per tonne over the LME Price on the threat to 50% tariffs on Canadian Metal before retreating after news of the truce between Ontario Premier Doug Ford and the United States. It may also lead to a significant realignment in global trading patterns. Prior spikes in U.S. aluminum premiums have pushed European premiums up. It is only logical that Europe, which also depends on primary metal imports to compete in the global marketplace for spare parts. This time it's different. While the U.S. has seen its premiums soar to new heights, European premiums are falling. It is not logical, especially since European consumers will lose Russian supplies over the next 12 months as part of the latest sanctions package. The European premium is more sensitive than ever to the North American market. This divergence indicates that some US suppliers are looking to avoid Trump’s tariff tantrums and re-direct sales to Europe. The European beer drinkers will benefit from this, as they can offer a can of aluminium to their American counterparts who are less fortunate.
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US automakers seek exemption from tariffs for Tata Steel Nederland as a key supplier
Tata Steel Nederland, the Dutch arm for the Indian steel giant Tata Steel, announced on Wednesday that some of its U.S. customers, particularly from the automotive industry, are lobbying to have the supplier exempted of U.S. steel import tariffs. TSN's spokesperson said that the exemptions were the most important factor in reducing the effect of tariffs. He added that it was still too early to make any comments on the effects for the industry. "We've been closely in touch with our customers for some time, and have assessed the implications of the recent change in the government in the U.S. He said that we are in constant contact with stakeholders to assess possible effects and minimize them. TSN provides high-quality steel grades of critical and strategic importance to the United States. TSN is the only American company that supplies nickel-plated strips for electric vehicle batteries, and copper-plated strips for fuel lines for cars. The U.S., which accounts for around 12% of sales annually, is the second-most important market in the group after Europe. In 2018, the Dutch steelmaker benefited from a tariff exemption under the former Trump administration. Trump's increased duties on steel and aluminum imports went into effect on Wednesday, as previous exemptions, duty free quotas, and product exclusions had expired. Reporting by Alban Kach Editing by Mark Potter
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South Africa cuts Eskom's debt relief package by an additional $1.1 billion
South Africa announced on Wednesday it would further reduce its debt relief package to state power utility Eskom. It would also provide some support through loans, rather than take on the company's existing debt. "Eskom's financial position is much better than it was in 2023, when the original debt relief announcement was made. We have simplified the debt relief package's final phase as a result. This was announced by the National Treasury in its revised annual budget. The National Treasury will instead lend Eskom 50 billion Rands in order to avoid taking on 70 billion Rands of debt. The government reduced its previous support package by four billion rands after Eskom failed to meet its deadline for disposing of its Eskom Finance Company. Eskom announced in December that its first profit since 2008 is expected in 2025. In summary, the government will have loaned Eskom 230 billion rand over the course of five years to help the utility repay its debt. The Treasury announced on Wednesday that the amount was about 24 billion less than originally projected. South Africa has been struggling for years to revamp Eskom. Eskom is dependent on bailouts, and it has implemented rolling blackouts for over a decade. This has hampered economic growth.
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Blackstone: Trump's tariffs could be a positive economic stimulus
Stephen Schwarzman, Blackstone's Chief Executive, said that the tariffs imposed by Donald Trump can increase manufacturing in the United States - the largest economy in the world. Since Trump took office in January, his focus on tariffs has shaken investor confidence. Consumers and businesses have also expressed concerns about a U.S. economic recession that could affect the global economy. Schwarzman, who has been a Trump donor for many years, told reporters in Mumbai, at an event marking Blackstone's twentieth anniversary in India that he thought the India-U.S. trade negotiations would be easier than with other countries, following a recent meeting between Trump and Prime Minister Narendra modi. When asked about the impact of U.S. Tariffs on geopolitical orders, he replied that the impact "at the end" would lead to an increase in manufacturing in the United States. Schwarzman stated that "given the size and scope of the U.S. this tends to be good for the rest of the world." He added that "you don't know what this will all turn out to be, and how initial statements could lead to actual modifications." However, he didn't go into details about which sectors would benefit or how tariffs might boost the economy. Trump has imposed 25% tariffs on steel and aluminum imports into the U.S., and plans to take further measures. Amit Dixit said that Blackstone plans to double the assets it manages in India from the current level of $50 billion in the next couple of years. This U.S. investment firm is one of India's biggest owners of office buildings and shopping malls. The company has also invested in IT companies and electric vehicle component manufacturers. Dixit stated that the U.S.-based company, which has around $60 billion in infrastructure assets worldwide, is also looking to invest in Indian digital infrastructure. This includes data centers as well as telecom towers, renewable energies, airports and port facilities. Reporting by Dhwani Paandya from Mumbai, editing by Aditya K. Kalra and Chizu Nomiyama.
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Canada announces C$29.8 Billion in Tariffs as Retaliation against US
Dominic LeBlanc, Canada's finance minister, announced that Canada would impose C$29.8 billion in retaliatory duties on the United States as a response to President Donald Trump's steel- and aluminum-tariffs. Trump's increased duties on steel and aluminium imports went into effect on Wednesday, as previous exemptions, duty-free quotas, and product exclusions had expired. His campaign to reorder international trade norms for the U.S. is gaining momentum. Canada is the largest foreign supplier of aluminum and steel to the United States. Canada's retaliation is aimed at steel products worth C$12.6billion and aluminum products worth C$3billion, as well as other imported U.S. products worth C$14.2billion for a total amount of $29.8billion. LeBlanc, at a press conference, said that the counter-tariffs of Canada affect products such as computers, sporting equipment, and cast iron. The U.S. and Canada trade war escalated as Justin Trudeau was preparing to hand the power over to Mark Carney this week, who had won the Liberal leadership race on Sunday. Carney stated on Monday that he would not be able to speak with Trump before he had been sworn in at the prime minister's office. Trump said again on Twitter that he wished Canada to become "our beloved Fifty First State." (Reporting and editing by Caroline Stauffer; Louise Heavens, Tomaszjanowski and Caroline Stauffer)
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US Commerce chief: Nothing will stop metals duties, will add protection to copper
U.S. Secretary of Commerce Howard Lutnick stated that President Donald Trump would not be able to stop his expanded 25% tariffs for steel and aluminum unless the domestic production in the United States is improved, and that Trump plans to add copper as part of his trade protections. Lutnick told Fox Business Network he would also wait until Mark Carney is fully installed as Canadian Prime Minister before negotiating on trade at a national scale. Lutnick, speaking about the meeting with Ford, said, "I think we just need to make sure that we are on the same page, get to know each other and then we will negotiate with Canada as a whole." Lutnick stated that semiconductors, pharmaceuticals, and steel are among the essential products which must be manufactured in the United States to ensure national security. "We cannot be at war and depend on steel and aluminium from another country. Lutnick stated that it was "just not reasonable". "The president wants to keep steel and aluminium in America. Let me be clear: nothing will stop this until we have a strong, domestic steel and Aluminum capability. He's also going to include copper in the mix. Trump's late February Order Lutnick To determine if tariffs should be imposed on copper imports using the same Section 232 investigation that was used to support the steel and aluminium duties, the government will conduct a Section 232 investigation. Reporting by David Lawder, Susan Heavey and Chizu Nomiyama
European stocks are boosted by optimism about Ukraine, but trade tensions persist
The euro was near its five-month high in the early European trading of Wednesday, with news that Ukraine will support a U.S. plan for a 30 day ceasefire. However, traders were cautious due to fears over U.S. tariffs.
Wall Street was left in a state of confusion on Tuesday, after U.S. president Donald Trump had threatened to double the steel and aluminum tariffs against Canada to 50%. He then reversed his decision.
The U.S. indexes recovered a portion of their losses in the later session, and European futures rose after Kyiv announced it would accept the U.S. ceasefire offer and the U.S. stated it would resume military aid to Ukraine and intelligence sharing.
At 1032 GMT on Tuesday, Europe's STOXX 600 index was up 0.8% for the day. This is a turnaround from four days in a row of losses.
The DAX in Germany and the FTSE 100 in London both rose by 1.4%.
The MSCI World Equity Index, which had lost 4.1% this month so far, rose 0.1% for the day.
The stock market has been hit by its worst selling in many months as Trump's tariff focus since taking office, in January, has hurt consumer confidence and businesses. It also sparked fears of an upcoming U.S. economic recession.
Trump's tariffs against all U.S. imports of steel and aluminum took effect on March 1. The European Commission responded by announcing that it would implement counter-tariffs for U.S. products worth 28.40 billion euros (26 billion dollars) starting next month.
Amelie Derambure is the senior multi-assets manager at Amundi. It's Europe's largest asset manager.
The news is a bit painful for the markets, because tariffs are the main topic. We know that they're bad for growth, not only for the U.S. but also the rest of the globe.
EURO NEAR FIVE MONTH HIGH
The U.S. Dollar Index was barely changed at 103.52, while the euro reached its highest level in five months, $1.0913. This was aided by the Ukraine-related news. The Russian rouble hit a six-month high Tuesday but fell back on Wednesday.
Derambure, Amundi's Derambure, said that the risk premia embedded in the euro currency due to low growth, political unrest, etc., has been declining very quickly.
The yields on government bonds in the euro zone rose. The benchmark German Bund yield was near a 17 month high, as Germany's next likely chancellor Friedrich Merz worked to gain support for an increase in state borrowing. Germany's plans to overhaul borrowing rules and create a 500-billion euro infrastructure fund are expected to lead to structurally higher yields on its bonds.
The German 10-year bond yield has increased by 5 basis points to 2.924%.
Oil prices rose due to a weaker dollar. However, gains were limited because of fears about a U.S. slowdown, and the impact of tariffs on global growth.
Brent futures rose 1.1% to $70.31 a barrel, while U.S. West Texas intermediate crude futures increased 1.2% to $67.02 a barrel.
The markets are awaiting the U.S. CPI report due at 1230 GMT. It is expected that inflation will be cooling.
The Canadian central bank's meeting will also be watched by traders, as markets expect a seventh consecutive cut in interest rates. ($1 = 0.9215 euros) (Reporting from Elizabeth Howcroft in Paris; additional reporting by Tom Westbrook, Singapore; editing by Alex Richardson).
(source: Reuters)