- Gold prices surged by more than 1 per cent on Monday after President Donald Trump’s announcement that the United States will impose a 25 per cent tariff on all steel and aluminum imports starting Monday
- Canada is a top supplier of primary aluminum to the U.S., contributing 79 per cent of total imports in the first 11 months of 2024
- President Trump also revealed plans to introduce reciprocal tariffs on Tuesday or Wednesday, which will apply to all countries and match the tariff rates levied by each country
- The announcement has already caused a ripple effect in the commodities market, with gold prices reaching new highs
In a significant market reaction, gold prices surged by more than 1 per cent on Monday, driven by heightened demand for the safe-haven metal.
This increase follows President Donald Trump’s announcement on Sunday that the United States will impose a 25 per cent tariff on all steel and aluminum imports starting Monday.
The new tariffs are set to impact major suppliers, with Canada, Brazil, and Mexico being the largest sources of U.S. steel imports. Canada, in particular, plays a crucial role as the top supplier of primary aluminum to the U.S., contributing 79 per cent of total imports in the first 11 months of 2024.
President Trump also revealed plans to introduce reciprocal tariffs on Tuesday or Wednesday, which will apply to all countries and match the tariff rates levied by each country. This move is expected to further agitate market uncertainty and drive investors towards gold as a secure investment. He did not specify when these tariffs would be imposed.
The announcement has already caused a ripple effect in the commodities market, with gold prices reaching new highs. Analysts predict that the demand for gold will continue to rise as investors seek stability amidst the escalating trade tensions.
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