Steel, Aluminium Stocks Slip Up To 2.5% After US Doubles Import Tariffs To 50%
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Shares of Indian steel and aluminium companies fell as much as 2.5% in Monday's trade; Key points for investors
Shares of Indian steel and aluminium companies fell as much as 2.5% in Monday's trade after US President Donald Trump announced that the United States would double existing tariffs on steel and aluminium products, from 25% to 50%, effective June 4, 2025.
Hindalco saw the sharpest intraday drop among metal stocks, slipping 2.4% to a low of Rs 633.35. NALCO and SAIL each declined 2.2%, touching intraday lows of Rs 176.40 and Rs 126.40, respectively. JSW Steel and Tata Steel shares also fell 2% each, with JSW Steel reaching Rs 993.80 and Tata Steel slipping to Rs 157.65. Jindal Stainless dipped 1.6% to Rs 633.35, and NMDC lost 1.6% to Rs 70.04.
NMDC Steel shares fell 1.5% to Rs 37.53, while Jindal Steel & Power dropped 1.47% to Rs 934.5.
The new tariffs carry significant implications for India's export-oriented metal sector. Government data shows India exported USD 4.56 billion worth of iron, steel, and aluminium products to the US in FY2025. Of this, USD 587.5 million came from iron and steel, USD 3.1 billion from articles of iron or steel, and USD 860 million from aluminium and related products. These categories are now set to face higher tariffs, threatening their competitiveness in the US market.
The tariff hike, announced on May 30, 2025, under Section 232 of the US Trade Expansion Act of 1962, revives the Trump-era trade policy used to initially impose a 25% tariff on steel and 10% on aluminium in 2018. These rates were already raised to 25% across both categories earlier this year and will now double again.
The move is expected to push US steel prices beyond USD 1,180 per tonne, driving up costs for key industries such as automotive, construction, and manufacturing. India has raised the matter at the World Trade Organization (WTO) and may pursue further action in response to the US decision.
First Published:
June 02, 2025, 09:58 IST
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