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Steel stocks soar as U.S. braces for tariff hikes on Chinese imports

Published: 14 May. 2024, 11:05

SARAH CHEA
[email protected]

U.S. President Joe Biden calls for tripling tariffs on Chinese steel imports while speaking at the United Steel Workers headquarters in Pittsburgh, Pennsylvania, on April 17. [EPA/YONHAP]

Shares of steelmaking companies surged Tuesday morning ahead of the U.S. government's anticipated announcement of tariff hikes in targeted sectors, including steel and EVs.

Histeel, a steel pipe manufacturer, traded at 4,480 won ($3.27) as of 10:30 a.m., up 14.4 percent compared to the previous trading session.

Posco Steeleon, a steel-making subsidiary of Posco, traded up 3 percent at 48,150 won, while Kospi-listed Bookook Steel rose 6 percent to 3,325 won.

Hyundai Steel inched up 1.4 percent to trade at 32,000 won, while KG Steel traded up 1.6 percent at 6,980 won.

MoonBae Steel traded up 3 percent to 2,975 won, while Kosdaq-listed Shin Steel rose 4.7 percent to trade at 3,900 won.

The strong shares come as U.S. President Joe Biden is expected to announce new China tariffs targeting strategic sectors on Tuesday, local time. The new tariffs will likely include tripling the existing 7.5 percent tariff rate on Chinese steel and aluminum to 25 percent, as well as tariffs on Chinese EVs rising to 102.5 percent from 27.5 percent, according to multiple reports.

BY SARAH CHEA [[email protected]]