The metal sector took a blow as the market opened today on 2 June 2025. The Nifty Metal index is down by around 0.60% at around 1p.m today, with more than half of its constituents trading in red. This blow came as Trump announced that the US would impose a 50% tariff on steel imports starting from 4 June 2025. Let’s try to understand how the metal sector is affected by this tariff threat, which stocks are mostly affected, and more.

Doubling The Tariff  

Currently, the steel import tariff is at 25%, and as per the recent announcement by Trump, it can be 50% from 4 June. This is simply doubling the recent tariff, which can affect the steel industry massively. The trade tensions are rising with this decision of the US government. The steel companies operating globally are under pressure, and thus heavy selling has been witnessed in the sector. 

It was on 30 May, in the rally at the U.S. Steel in Pennsylvania, when Trump announced that new tariffs would be effective from 4 June. He also said that there won’t be any outsourcing and no layoffs in the steel sector in the US, referring to the pending agreement between U.S. Steel and Nippon Steel. 

Steel Stocks in Red 

The steel giants are trading red today as investors are worried about the import opportunities of these steel manufacturers. JSW Steel is the most affected stock, and JSW Steel share price has dropped around 1.62% as of 1:25 p.m. today, followed by Tata Steel share price, which is down 1.25%. Jindal Steel is also down by around 0.48% currently, JSL by 0.48% as well. Having said that, the SAIL share price is in green, however, just by a margin of 0.44%. All these stocks were heavily down as the market opened in the morning, with each stock trading 1.5% to 2% below its last closing price.

So, while the market has already soaked in the news, it is evident that the global steel producers are affected the most by the decision of the US government. As JSW Steel and Tata Steel are two of the most important steel manufacturers with global reach from India, they are affected the most. 

Global Take on Trump’s Tariff Imposition  

Whether it is the European Union or China, or India, all are looking down on the US’s tariff increase. Experts are suggesting that there would be volatility in the steel and aluminum markets due to the turbulent tariff impositions by the US. Tariff concerns were already weighing heavily on the markets, and now again with this increased tariff on steel imports, the trade tensions are here to escalate. 

Source: MoneyControl

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