By Tony Munroe

SINGAPORE, Feb 11 (Reuters) - U.S. President Donald Trump's 25% tariffs on steel and aluminium sent gold to record highs on worries of widening trade conflict and inflation, while some countries held out hope for negotiations and Chinese steel firm shares came under pressure.

China, the biggest steel maker, is not a top direct exporter of steel to the U.S. but Trump said that China's exports had forced others to ship more to the U.S., while rising imports "support a conclusion" of transshipment or processing of steel products via third party countries into the U.S.

After saying there would be no exemptions, Trump agreed to consider one for Australia following a call with Prime Minister Anthony Albanese, adding that Australia was "one of the few" countries with which the United States had a trade surplus.

Australia accounts for 1% of U.S. steel imports and 2% of its aluminium imports, Albanese said.

Later on Tuesday, South Korean Trade Minister Cheong In-kyo said that Seoul will "actively consider" whether there is room for negotiation on the tariffs, warning also of reduced U.S. steel demand and erosion of steel exporters' profitability.

In 2024, South Korea posted a record $55.7 billion trade surplus with the United States, up 25.4% from a year earlier.

Canada, Brazil, Mexico, South Korea and Vietnam are the top shippers of steel into the U.S., according to government and American Iron and Steel Institute data, while Canada is the dominant supplier of imported aluminium.

Do Ngoc Hung, Vietnam's trade envoy to the U.S., said many countries were likely to enhance protective measures following the U.S. move, making it harder for steel exporters such as Vietnam.

"Vietnamese steel makers still have a chance to continue their shipments given that U.S. manufacturers are yet to be able to fully meet domestic demand," he said on Tuesday.

"Vietnamese exporters need to assess the situation carefully, and seek to boost their exports to markets that have free trade agreements with Vietnam," Hung added.

Gold climbed to a record high, as investors flocked to the safe-haven asset, with spot gold XAU up 0.3% at $2,916.37 per ounce as of 0701 GMT after earlier reaching $2,942.70.

Shares in Chinese steelmakers dipped between 0.145% and 2.62%, while futures in iron ore, the main steelmaking ingredient, erased early gains to trade lower as tariff concerns outweighed weather-related supply disruptions in Australia.

PRAISE AND CONCERN

The American Primary Aluminum Association (APAA) praised Trump for the tariffs.

"Today is a great day for the U.S. aluminum industry," said Mark Duffy, president of the APAA.

"Unfair trade practices have devastated the domestic aluminum industry and President Trump's actions today will protect thousands of American workers and their families."

But U.S. companies that use aluminum urged Trump to more fully consider the long-term effect tariffs could have on the entire U.S. metals industry.

"I don’t think anyone in the U.S. is more in favour of increasing domestic aluminum production than me, but it has to be done thoughtfully over several years,” said Brian Hesse, CEO of New York-based PerenniAL, which distributes slab, wire rod and billet produced with aluminium used in products such as wheels and window frames.

“You can’t cut your nose off to spite your face. We can’t produce enough aluminum in the U.S. to meet half of our demand right now,” Hesse said, adding that price increases from tariffs would be passed to consumers.

Chicago-based Century Aluminum CENX.O, which operates several U.S. aluminium smelters, said it "strongly supports" Trump's tariffs on imports of the metal.

"President Trump's decisive action will protect national security and help level the playing field for America’s aluminum workers," said Century CEO Jesse Gary.

(Reporting by Tony Munroe in Singapore, Ernest Schneider in Houston, Melanie Burton in Melbourne, Hyunjoo Jin in Seoul, Amy Lv in Beijing and Francesco Guarascio in Hanoi; Editing by Kate Mayberry)

((tony.munroe@thomsonreuters.com))