US Commerce Department recommends tariffs and/or quotas on steel and aluminium - ANZ

Analysts at ANZ explained that the US Commerce Department has recommended to the President that tariffs and/or quotas on both steel and aluminium be imposed. 

Key Quotes:

"The recommendations range from high tariffs on imports from a list of specific countries (including China), to lower tariffs on imports from all countries. The persistent rise in import dependence and erosion of local production capabilities was cited as the rationale for the recommendation."

"The reports are currently under consideration by the President, and no final decisions have been made with regard to their contents just yet. When it comes to considering the impact of protectionist measures, it is no easy feat, as there are a number of moving parts."

"And one of the biggest risks of course is that they just set off a tit-for-tat exercise by major countries."

"However, one thing that does seem clear is that raising the price of key commodity inputs before a large infrastructure package is likely to pressure inflation higher - this clearly a hot topic for markets right now."