Singapore shares fall after Trump vows to double steel tariffs; STI down 0.1%

SINGAPORE – Shares on the Singapore bourse ended lower on June 2, after US President Donald Trump said last week that he would double tariffs on steel and aluminium to 50 per cent to “even further secure” the US steel industry.

The benchmark Straits Times Index (STI) fell 0.1 per cent, or 4.02 points, to 3,890.59 points.

Across the broader market, decliners outnumbered advancers 297 to 197, after 1.2 billion securities worth $1.3 billion were traded.

The top gainer on the benchmark index was property developer Hongkong Land, which rose 2.3 per cent or 12 US cents to US$5.29.

The biggest decliner was offshore and marine specialist Seatrium. The counter fell 2.4 per cent or 5 cents to $2.

Local telco Singtel was the most actively traded counter by volume, with 32.2 million units worth $122.1 million traded. The counter fell 0.3 per cent or 1 cent to $3.80 on a cum dividend basis.

Regional bourses were also in the red on June 2 in the wake of Mr Trump’s announcement, which will take effect on June 4.

Japan’s Nikkei 225 slid 1.3 per cent, Hong Kong’s Hang Seng Index fell 0.6 per cent, and Australia’s ASX 200 was down 0.2 per cent.

Mr Vishnu Varathan, head of macro research for Asia (excluding Japan) at Mizuho Securities, said that Canada, Mexico and Brazil will be those hurt the most by the tariffs due to their exposure to the US market. In Asia, Thailand, South Korea and India are the most exposed, followed by Australia.

The US “will not be unscathed” by the tariffs either, given that onshore steel and aluminium is more expensive and will raise costs for businesses, said Mr Varathan.

“Ultimately, this will prove to be an act of self-harm, hurting the competitiveness of downstream US industries,” he added.

THE BUSINESS TIMES