In a recent speech Donald Trump spoke about the need to protect national defense and national interests. The head of the White House stated that a tax will be introduced soon on imported steel in the amount of 25% and 10% for aluminum. The President did not say whether any countries or goods are exempt from this tax, but he said that he would sign a formal order in the next week and it will be of a long-term nature.
Europe and Asia are preparing for a possible trade war since this decision may cause a serious blow to producers.
These statements are also adding pressure on stock indices, thus the Dow Jones lost more than 400 points, while the S&P 500 fell below the MA (100).
However, the shares of some companies have shown growth, so US Steel Corp. increased by 5.7%, while the production of steel by Nucor Corp. rose by 3.5%.
At the same time, the strengthening of the dollar and the increase in the number of drilling rigs lowered the prices for Brent and WTI brands under the strong resistance levels 64 and 61 dollars per barrel, respectively.
