US Doubles Steel and Aluminium Tariffs: Market Rundown

New Tariffs on Steel and Aluminium

• 🇺🇸 US tariffs on imported steel and aluminium have doubled, with a 50% levy now in effect for most countries.
• 🇬🇧 Britain is exempt from this increase and will maintain a 25% tariff, as it is not a top exporter of these materials to the US.
• 🇨🇦 Canada and Mexico are ranked as the top two exporters of steel to the US, with Canada being number one and Mexico number three.

Federal Debt and Tax Bill

• 💰 The estimated total federal government debt has reached $36.2 trillion, including President Trump's recent tax and spending bill.
• 🗣️ President Trump has labeled the bill a "big beautiful bill," while Elon Musk has described it as a "disgusting abomination."

Wells Fargo's Asset Cap Lifted

• 🏦 The Federal Reserve has released Wells Fargo from a 7-year, $1.95 trillion cap on its assets.
• ✨ The CEO of Wells Fargo views this as a pivotal moment that could help transform the bank's performance.
• 📈 In after-hours trading, Wells Fargo shares rose by 2.7% following the announcement.

South Korean Market and Global Shares

• 📈 The South Korean Cosby index reached its highest level since August 2024 after the presidential victory of Liberal candidate Lee Jiong.
• 🇰🇷 Lee Jiong's win has raised hopes for stimulus measures and quick market reforms.
• 🌏 Asian shares were generally higher, a positive sentiment that has spread to early European trade, led by tech stocks.
• 🇺🇸 US futures indicate a mixed open on Wall Street.

China's Rare Earth Alloy Restrictions

• 🚗 Global car makers, including German manufacturers, have complained about China's restrictions on exports of rare earth alloys.
• ⚠️ German car makers have warned of potential shutdowns due to these restrictions.
• 🇨🇳 China suspended these exports in April, which is widely seen as leveraging its dominance in rare earths amidst the ongoing trade war.