SEOUL/SYDNEY: US President Donald Trump’s planned tariffs on steel and aluminum will distort global trade and cost jobs, Australia’s trade minister said on Friday, highlighting the risk of retaliatory measures as Asian exporters sought more detail on the plans.
Fears of an escalating trade war hit the share prices of Asian steelmakers and manufacturers supplying US markets particularly hard on Friday following a rough night on Wall Street.
Trump said the duties of 25 percent on steel and 10 percent on aluminum would be formally announced next week, although White House officials later said some details still needed to be ironed out.
“The imposition of a tariff like this will do nothing other than distort trade and ultimately, we believe, will lead to a loss of jobs,” Australian trade minister Steven Ciobo told reporters in Sydney.
“My concern remains that on the back of actions like this we could see retaliatory measures that are put in place by other major economies. That is in no-one’s interest.”
Australia, which has championed the free-trade Trans Pacific Partnership that Trump pulled the US out of, has sought an exemption for its steel and aluminum to the US, Ciobo added.
Steel has become key focus for Trump, who pledged to restore the US industry and punish what he sees as unfair trade practices, particularly by China.
Although China only accounts for 2 percent of US steel imports, its massive industry expansion has helped produce a global glut of steel that has driven down prices.
“The impact on China is not big,” said Li Xinchuang, vice secretary-general of the China Iron and Steel Association. “Nothing can be done about Trump. We are already numb to him.”
South Korea, the third-largest steel exporter to the US after Canada and Brazil, said it will keep talking to US officials until Washington’s plans for tariffs are finalized.
“For us, the worst-case scenario was a 54 percent tariff,” said a South Korean trade ministry official who declined to be named as he was not authorized to speak to media. “Still if the option for a global tariff of at least 24 percent is taken, that will still affect our steel exports to the US.”
South Korean trade minister Kim Hyun-chong has been in the US since February 25, the trade ministry said. Kim has met US Commerce Secretary Wilbur Ross and other officials to raise concerns over the so-called Section 232 probe and consider a plan that would minimize the damage to South Korean companies.
Asian steelmakers fear US tariffs could result in their domestic markets becoming flooded with steel products that have nowhere else to go.
“We are concerned about how other exporters react, what will happen with steel that cannot be sold to the US,” Vikrom Wacharakrup, Chairman of Iron and Steel Industry Group, Federation of Thai Industries, said. Thailand exports steel mainly to Asia but also the US.
The Trump administration also cited national security interests for its action, saying the US needs domestic supplies for its tanks and warships.
Contrary to the action announced by Trump on Thursday, the Department of Defense had recommended targeted steel tariffs and a delay in aluminum duties.
“We continue to seek clarification,” said Japanese Trade and Industry Minister Hiroshige Seko. “I don’t think exports of steel and aluminum from Japan, which is a US ally, damages US national security in any way, and we would like to explain that to the US.”
India also raised concerns about the use of the national security interests provisions.
“We have only 2 percent of our exports to US so no immediate dent, but validity of Section 232 is stretched to be used as tariff barrier,” India’s Steel Secretary Aruna Sharma said.
Trump believes the tariffs will safeguard American jobs but many economists say the impact of price increases for consumers of steel and aluminum, such as the auto and oil industries, will be to destroy more jobs than they create.
Japan’s Toyota Motor Corp. said the tariffs would substantially raise costs and therefore prices of cars and trucks sold in America.
News of the tariffs hit sentiment on Wall Street due to the potential impact of higher costs on consumers and the potential for damaging tit-for-tat retaliation by affected countries.
Asian steelmakers suffered with shares in South Korea’s POSCO and Japan’s Nippon Steel & Sumitomo Metal Corp. down more than 3 percent.
Asia fears trade war after US President Trump to impose hefty steel, aluminum tariffs
Asia fears trade war after US President Trump to impose hefty steel, aluminum tariffs
Saudi investment hits 32% of GDP, non-oil fixed capital reaches 40%, minister says
RIYADH: Saudi Arabia’s investment now accounts for 32 percent of gross domestic product, with non-oil fixed capital at 40 percent, according to the minister responsible for portfolio.
Speaking during his visit to the Shoura Council, Khalid Al-Falih said that foreign direct investment is expected to grow fivefold, signaling strong Vision 2030 progress.
“Regarding cumulative performance, the Kingdom has exceeded all expectations, achieving high levels of investment,” Al-Falih said, according to a video posted on Al-Ekhbariya’s X account focused on economic matters.
The minister added: “Today, investment accounts for 32 percent of the total GDP. In terms of non-oil GDP, fixed capital represents 40 percent, compared with 41 percent in China, the highest globally.”
If we take the non-oil GDP, he said, fixed capital will make 40 percent. “China is the largest globally with 41 percent. So, we will rank second if we compare it to the non-oil economy and fourth when measured against total GDP,” Al-Falih said.
He emphasized that the Kingdom offers an investment-attractive environment, noting that when focusing on foreign direct investment rather than overall investment, Saudi Arabia ranks among the world’s highest.
The minister of investment added that FDI is expected to grow fivefold by the end of 2025, though these data require confirmation, stressing that this is “a big indicator for the success of Saudi Vision 2030.”
During his address to the session, Al-Falih emphasized that Saudi Vision 2030 prioritizes economic diversification and reducing dependence on oil, through boosting the private sector’s contribution to inclusive economic development, supporting national sectoral priorities, and driving growth in the Kingdom’s GDP.
He highlighted key initiatives enabling the private sector, including the establishment of the Ministry of Investment and the Saudi Investment Promotion Authority, the launch of the “Shareek” program, the development of the National Investment Strategy, and linking all stakeholders in the investment ecosystem.
“The Cabinet’s adoption of the National Investment Strategy, launched by Crown Prince in 2021 and implemented in 2022 as a comprehensive national framework, has played a major role in positioning investment as a driver of economic growth,” he said.
Al-Falih revealed that the ministry has identified more than 2,000 investment opportunities worth over SR1 trillion ($267 billion), noting that 346 of these opportunities have been converted into closed deals valued at over SR231 billion through the “Invest Saudi” platform.
He also highlighted the success of the regional headquarters attraction program, with licenses issued to more than 700 global companies by the end of 2025, surpassing the 2030 target of 500 companies, across diverse sectors that reinforce Saudi Arabia’s role as a regional business hub.
The minister revealed that active investment licenses have grown tenfold, rising from 6,000 in 2019 to 62,000 by the end of 2025, highlighting the role of companies in creating over one million jobs, including numerous positions for Saudi nationals.
Al-Falih noted the Kingdom’s success in attracting 20 of the world’s top 30 banks, as part of efforts to strengthen the presence of leading asset managers and international banks in support of the Saudi banking sector.
He also discussed reforms to enhance the business environment, such as the Civil Transactions Law, Companies Law, and the updated Investment Law issued in mid-2024, which contributed to Saudi Arabia moving up 15 places in the global competitiveness ranking.
The minister also announced the update of the National Investment Strategy in 2025, focusing on quality, productivity, and directing investments toward sectors with the highest economic impact, while developing financing solutions for SMEs.
