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Highlights
- US doubles tariffs on aluminium and steel imports
- ASX-listed aluminium producers under pressure
- BlueScope gains despite broader sector weakness
Aluminium producers listed on the Australian Securities Exchange (ASX) faced a downward trend after news broke that the United States would be doubling its tariffs on steel and aluminium imports from 25% to 50%. This policy shift, announced by US President Donald Trump, has sparked renewed concerns about global trade tensions and their impact on commodity-linked stocks, including some of the notable names within the ASX300.
One of the most impacted companies was Alcoa Corporation (ASX:AAI), which operates a significant aluminium smelting facility in Australia. By 2:00pm AEST, the stock had declined by 4.38% to $41.24. The tariff hike has cast uncertainty over export profitability and cost structures, prompting cautious investor sentiment around such exposure.
Rio Tinto (ASX:RIO), another major player in the aluminium space with control over three smelters in the country, also saw a decline in share price, slipping by 1.87% to $110.55. Despite its diversified global operations, the direct implications of tariff hikes on aluminium pricing and downstream demand remain key concerns for market watchers.
South32 (ASX:S32), which is involved in aluminium mining operations, followed the trend with a 3.11% drop, trading at $2.96. The broader metals and mining sector is particularly sensitive to macroeconomic trade developments, and this move by the US has contributed to short-term volatility across these equities.
Interestingly, BlueScope Steel (ASX:BSL) emerged as a rare gainer during the session, with its stock climbing 5.6% to $24.02. With five businesses operating across North America, BlueScope may benefit from the tighter trade environment, potentially offering a more domestically favourable supply option within the US. The positive investor response reflects optimism about demand for regionally-sourced steel.
These developments come at a time when investors are increasingly looking at ASX dividend stocks as a strategy to weather global uncertainties. Stocks with robust dividend profiles have traditionally been attractive during volatile phases.
As part of the broader ASX300, the performance of these resource-focused stocks can influence the index’s overall trajectory.
The US tariff announcement has introduced a fresh wave of market reaction, with aluminium-related ASX stocks under notable pressure. Investors will be watching closely for further international responses and how Australian producers recalibrate in a shifting global trade environment.
