Currencies of steel-producing and commodity-linked economies weakened against the U.S. dollar on Thursday, as President Trump said he would announce trade tariffs next week. He would introduce a 25% import tariff on steel and a 10% levy on aluminum, which bolstered stocks of U.S. steel producers. In 2017, the U.S. received the most steel imports from Canada, with the likes of Brazil, Mexico, and Russia also among top importers, according to data from the U.S. Department of Commerce. The tariffs would be broadly aimed rather than pinpointed at one particularly big metals-producing nations, according to a Thursday research note from Brown Brothers Harriman. “There is little doubt the U.S. action will see a World Trade Organization challenge,” the note said. Against the Canadian dollar , the greenback rose 0.4% to C$1.2881, while the Russian ruble was down 0.9%. The Brazilian real and Mexican peso , both slipped 0.3%. South Africa, which is heavily reliant on commodities, albeit accounting for a smaller chunk of U.S. imports, also saw a reaction in its currency, with the South African rand down 1.2%. China’s yuan , home to another steel exporting powerhouse, fell 0.4% and 0.5% against the dollar for its on-shore and off-shore traded currency, respectively.
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