Trump pushes forward with sweeping tariffs on steel and aluminum imports

In the United States, on February 10, 2025, U.S. Treasury yields remained steady, with the 10-year yield slightly up at 4.493% and the 2-year yield also increasing marginally to 4.285%. Investors are closely watching several economic indicators slated for release this week, including core inflation data and the producer price index. These reports could provide significant insights into the state of the U.S. economy. Additionally, retail sales data will be released on Friday as part of the week’s critical economic assessments. Federal Reserve Chair Jerome Powell is scheduled to testify before Congress on February 11 and 12, further drawing attention from market participants seeking guidance on potential monetary policy changes. The combined anticipation of these economic reports has led investors to brace for potential volatility in the markets amid concerns about inflation and interest rates. Simultaneously, President Donald Trump announced plans for a new 25% tariff on all steel and aluminum imports. This statement indicated a shift in trade policy as he indicated intentions to impose retaliatory tariffs on nations taxing U.S. imports. These tariff announcements follow the initiation of previously established tariffs targeting China. Experts have raised alarms about the potential economic repercussions of these maneuvers, suggesting that steep tariffs may push businesses to delay hiring and investment decisions. Lydia Boussour, a senior economist at EY-Parthenon, warned that such policies could lead to a slowdown in job creation, decrease in household incomes, and ultimately a restraint on consumer spending. With the financial markets on edge and potential increases in inflation, economic analysts are concerned about the ripple effects of these tariffs on the broader economy.