BIMCO Chief Shipping Analyst Peter Sand said Thursday - on the eve of the United States beginning to implement 25 percent tariffs on steel and 10 percent tariffs on aluminum - that trade restrictions are a "worrying trend that limits demand for shipping globally."
"Steel and aluminum tariffs may be ‘dish of the day’ and the impact on shipping is still unknown," he said.
He also noted that “major trade action against China is also likely to come from the U.S. Despite the fact that there is good reason - violation of intellectual property rights - the result is the same. It is damaging for the involved countries."
President Donald Trump ended up officially signing off on tariffs on China Thursday afternoon, just before 1:00 p.m.
"The tariffs on steel and aluminum will have a limited impact on most
international bulk trades," Sand said. "Nevertheless, they could trigger something
bigger that would negatively impact global shipping in a much wider way, including container shipping trade.
“The international atmosphere is full of threats of retaliation and it appears likely that major trading partners with the U.S. like the EU and China will hit back to draw a line in the sand for the U.S. Administration and President Trump," he added.
However, U.S. Trade Representative Robert Lighthizer said the U.S. is considering steel and aluminum tariff exclusions for various countries.