Views of Ms. Kaynat Chainwala (Research Analyst - Base Metals, Angel Commodities Broking):
"The global markets were taken aback after US President Trump announced steep import duties on Steel and Aluminium on 1st Mar'18, inviting restraint advice from trading partners especially the EU and China. Duties of 25 percent on steel imports and 10 percent on aluminium products are expected to be formally announced this week.
This has sparked concerns of a trade war between US and its major trading allies with retaliation warnings being issued already. European Commission President Jean-Claude Juncker warned of tariffs on famous US products like Harley-Davidson, Bourbon and Levi's, only to be reverted by Trump's further threats for duties on European cars.
Canada, top supplier to the US of both steel and aluminium, expectedly slammed these measures and cautioned the US of trade disruption between the two nations. Not only this, chances of NAFTA deal being reworked too, looks dim considering the current situation.
China has been less vocal till now and has asserted on avoiding a trade war with the US as the two superpowers have agreed to meet in Beijing to avoid trade tensions although timing of the same is not confirmed yet.
In the last few days, global criticism against US trade protectionism has gathered steam and it remains to be seen if this could change the reluctant stance of the US President."