This morning in the metals news, President Donald Trump threatened to impose an additional $325 billion worth of tariffs on imports from China, SHFE steel futures are down on pessimistic news from this latest round of U.S.-China trade talks and doubts are growing about the Thyssenkrupp–Tata Steel joint venture proposal.
The U.S. and China continued with yet another round of trade talks last week as the two parties attempt to resolve the conflict that produced a total of $360 billion in tariffs last year.
That tariff figure could be on the rise.
Arguing that not enough progress is being made quickly enough, President Donald Trump announced the tariff rate on a previously imposed $200 billion in tariffs will rise from 10% to 25% on Friday (the increase was originally set to go into effect Jan. 1, but was delayed as negotiations began), CNBC reported.
In addition, Trump threatened to add $325 billion more in tariffs on China.
SHFE Steel Futures Drop
The developments on the trade front and Trump’s tariff announcement have impacted markets, including SHFE steel futures, which fell Monday, Reuters reported.
However, environmental measures enacted in the Chinese city of Tangshan, a major steelmaking hub, offered some price support, according to the report.
Thyssenkrupp-Tata JV in Doubt?
The proposed Thyssenkrupp-Tata Steel joint venture in Europe is under scrutiny by the European Commission — and is in danger of being blocked.
According to a Financial Times report, the European Commission could be set to block the proposed merger unless the two firms make greater concessions. The proposed JV ultimately would create Europe’s second-largest steelmaking entity, behind only ArcelorMittal.