Business
European steel shows mixed response to Trump's planned tariff hike
European steel shows mixed response to Trump's planned tariff hike
About this update from Acerinox Sa
** European iron and steel stocks show mixed response after Trump said on Friday he planned to increase tariffs on imported steel to 50% from 25%** These duties fall under Section 232, which has not been blocked by courts, a trader notes** The trader has a cautious stance on ArcelorMittal EURONEXT:MT due to its dependence on U.S. sales exported from other regions** "Most of the other groups are in an intermediate position, with Voestalpine undoubtedly being the most impacted, but its high-end positioning should help absorb the shock," the same trader adds** Shares in ArcelorMittal and Aperam EURONEXT:APAM drop 1.2%, Austria's Voestalpine VIE:VOE drops 1.6% and Eramet EURONEXT:ERA drops 3.6%** Germany's Thyssenkrupp XETR:TKA falls 1.6%, while Salzgitter XETR:SZG, Aurubis XETR:NDA and Kloeckner XETR:KCO slip between 0.5% and 1.1%** "The latest announcements rather reinforce our sector hierarchy since our positive opinion on SSAB, ACERINOX and VALLOUREC is largely based on the strength of their US presence," the trader says** SSAB OMXSTO:SSAB_A rises 5.5%, while Acerinox BME:ACX and Vallourec EURONEXT:VK rise 3.7% and 4% respectively