BAJAJ FINSERV DIRECT LIMITED
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Increased US Tariffs on Steel and Aluminium: Impact on India’s Metal Sector and Stock Market

Geetanjali Lachke

US President Donald Trump's decision to double existing tariffs on imported steel and aluminium has impacted India's metal exports and, in turn, the stock market sector. This move, announced on May 30, 2025, has prompted responses from Indian government officials, industry bodies, and financial markets.

Details of the Tariff Increase

On May 30, 2025, US President Donald Trump announced a doubling of tariffs on imported steel and aluminium, effective from June 4, 2025.

  • Steel Tariff Increase: Raised from 25% to 50%

  • Aluminium Tariff Increase: Increased to 50%

This action is based on Section 232 of the US Trade Expansion Act of 1962, which allows the US to restrict imports deemed a threat to national security. This is the latest move in a series of tariff increases aimed at reducing reliance on foreign imports and boosting domestic production.

Impact on Indian Stock Market and Metal Shares

Market Impact on Indian Metal Sector

Indian metal stocks experienced a downturn on June 2, 2025, following the United States' decision to double import tariffs on steel and aluminum from 25% to 50%, effective June 4, 2025. The move, announced by US President Donald Trump, aims to bolster domestic industries but has raised concerns over global trade tensions and their impact on exporters. The announcement led to immediate reactions in the Indian stock market, particularly affecting major metal companies.

  • Key Stock Movements on June 2, 2025:

    • JSW Steel: Declined by 2.44%

    • Hindustan Zinc: Fell close to 4%

    • Vedanta: Dropped nearly 4%

    • Tata Steel: Experienced a decline of approximately 4%

    • Lloyds Metals & Energy: Fell over 4%

The Nifty Metal Index also saw a decline of 1.6%, closing at 9,047.95 on June 2, 2025.

Broader Market Sentiment

The tariff hike not only impacted metal stocks but also influenced broader market indices. On June 2, 2025:

  • The BSE Sensex fell by 484 points to 80,966, while the Nifty dropped 135 points to 24,615. Investors expressed concerns over potential retaliatory measures and the overall effect on global trade dynamics.

The US decision to raise tariffs on steel and aluminium imports has triggered a mixed response in the Indian stock market, especially in the metal sector. Investors are encouraged to remain informed and cautious before making investment decisions.

Disclaimer

This content is for informational purposes only and the same should not be construed as investment advice. Bajaj Finserv Direct Limited shall not be liable or responsible for any investment decision that you may take based on this content.

Hi! I’m Geetanjali Lachke
Financial Content Specialist

Geetanjali is an emerging content writer with a passion for writing and marketing. She focuses on crafting clear, engaging blog posts and articles that simplify complex topics, particularly in finance and business. Geetanjali is dedicated to delivering insightful content that helps readers understand and navigate critical concepts, empowering them to make informed decisions and stay ahead in the ever-evolving landscape of finance and business.

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