International News 12 February 2025
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Trump raises tariffs on aluminium and steel imports to 25%, effective from 4 March 2025
US President Donald Trump has signed a declaration to raise tariffs on steel and aluminium imports to 25% with no exemptions or waivers, in an effort to support struggling industries. This move has raised concerns about a potential multi-front trade war. The increased duty rate will apply to millions of tonnes of steel and aluminium imports from various countries, including those from Canada, Brazil, Mexico and South Korea, who had previously enjoyed duty-free entry into the US based on exemptions. The President has stated that this change will simplify import duties and ensure that all parties understand the rules. He also mentioned that he will carefully consider Australia's request for a steel duty exemption. This declaration is an extension of Trump's existing policy to protect steel products under Section 232.
Brazil to Retaliate for Trump's Steel Tariffs
The Brazilian government is considering the imposition of taxes on US technology companies, including Amazon, Facebook-owned Meta Platforms, and Google, as a response to President Donald Trump's proposal to impose a 25% tariff on all steel imports to the US. Brazil is a major supplier of steel to the US and a significant market for these technology companies. The Brazilian Finance Minister, Fernando Haddad, has stated that the government will only comment once Trump's policy is officially enacted. The suggestion of a tax on major technology companies was previously put forward by a Brazilian finance ministry official as a measure to address fiscal targets in the event of a shortfall in state revenue. The government will wait for an official decision before making a statement on the matter.
https://internasional.kontan.co.id/news/brasil-akan-membalas-tarif-baja-trump#google_vignette
Crude Oil Prices Gain Nearly 2%, Trade War Concerns Heat Up
Following three consecutive weeks of decline, oil prices closed higher by nearly 2%. However, investors are concerned about the possibility of a trade war initiated by US President Donald Trump. The price of Brent crude oil for the April 2025 delivery contract increased by $1.21, or 1.6%, reaching $75.87 per barrel. A similar trend was observed in the price of West Texas Intermediate (WTI) crude oil for the March 2025 delivery contract, which rose by $1.32, or 1.9%, to $72.32 per barrel. This recent rise in oil prices follows a 2.8% decline in the previous week, driven by concerns regarding global trade. The imminent signing of an executive order related to tariffs by President Trump could potentially increase the risk of a multi-front trade war. Despite these trade concerns, Wall Street's major indices closed higher on Monday.