ASX drops after Trump announces 25 per cent tariff on all steel and aluminium imports

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The Australian sharemarket plummeted sharply on the back of news that US President Donald Trump will be slapping a 25 per cent tariff on all steel and aluminium imports, which will likely include those from Australia.

Immediately after opening, the Australian Securities Exchange (ASX) dropped 0.65 per cent, falling 55 points on account of the news.

"Allustral steel entering the country will incur a 25% tariff," he told reporters on Sunday as he flew from Florida to New Orleans for the Super Bowl.

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When asked about aluminium, he replied, "aluminium as well" will be subject to the trade sanctions.

Trump also repeated that he'd make an announcement about "reciprocal tariffs" — probably on Tuesday or Wednesday — meaning the US would slap import duties on products where another country's already slapped on tariffs to US goods.

We're getting ripped off when you think it's 130 percent and we're giving them the benefit of the doubt, it's not going to remain like that.

According to the United Nations COMTRADE database, Australian iron and steel exports to the US were valued at approximately $378 million ($US237 million).

Australian exports of aluminium are worth Australians approximately five hundred and three million dollars.

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One of Australia's biggest steelmakers, BlueScope, recorded a three point forty-six per cent lift in its share price this morning, growing to twenty-two dollars twenty-six cents.

BlueScope has got manufacturing operations in the United States.

Another Aussie steel firm Bisalloy Steel plummeted 5.05 per cent following the announcement.

Trump previously slapped tariffs on steel and aluminium back in 2018,

Australia was given a pass on the list of impacted countries after negotiations between Trump and former Prime Minister Malcolm Turnbull.

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Trump's comments are the latest demonstration of his openness to imposing import tariffs-threats.

Tariffs are rolling in prior to this point in his presidency than when he was in the White House previously, when he focused on tax cuts and deregulation.

Trump has been saying one thing, he sees import taxes as a way to crack down on stuff like immigration, but on the other hand, he reckons they're also a way to bring in some dosh to help pay off the government's budget shortfall.

More to come.

However, if you provide the text, I will paraphrase it in the Australian English language, keeping the context and meaning intact, and excluding any quotes and numbered lists.