SINGAPORE: Japanese rubber futures fell to their lowest since March 11 on Thursday after US President Donald Trump announced a sweeping set of tariffs, dampening the global demand outlook and escalating a trade war.
The Osaka Exchange (OSE) September rubber contract slid 3.92% to finish at 331.3 yen ($2.26) per kg, closing near a three-week low of 331.1 yen.
The May rubber contract on the Shanghai Futures Exchange (SHFE) slumped 3.18% to 16,295 yuan ($2,232.99) per metric ton. Prices tumbled to a near 7-month low at 16,310 yuan earlier in the session, their lowest since September 6, 2024.
The most active May butadiene rubber contract on the SHFE sank 4.04% to 13,170 yuan ($1,804.75) per ton. “Tariff announcements saw rubber futures down across the board, showing that the market is factoring impact to demand,” said Farah Miller, founder of independent rubber-focused data firm Helixtap Technologies. Trump on Wednesday unveiled a 10% tariff on most goods imported to the US, worsening a trade war that threatens to drive up US inflation and stall global economic growth.
Meanwhile, Trump’s 25% auto tariffs, kicking in April 3, will cover hundreds of billions of dollars worth of imports of vehicles and auto parts imports annually. Automobile sales could influence the intensity of automobile manufacturing, which involves using rubber-made tyres.
In response to fresh tariffs, equities in Beijing and Tokyo fell to multi-month lows, with China vowing countermeasures on Thursday.
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