JSW Steel, Tata Steel, Jindal Steel and other metal stocks decline amid Trump's 50% tariff on steel and aluminium imports

Experts believe the tariff imposition will impact Indian exporters, particularly those engaged in value-added and finished steel products and auto components.

US President Donald Trump on Friday, May 30, told Pennsylvania steelworkers that he would double the tariff on steel imports to 50% to protect their industry, a dramatic hike that could further increase prices for a metal used to make housing, autos and other goods.

In a post later on his Truth Social platform, he said aluminium tariffs would also be doubled to 50%, and both tariff hikes would go into effect from June 4.

Following this, metal stocks were trading lower on Monday. JSW Steel (-1.57%), SAIL (-1.24%), Lloyds Metals And Energy (-1.21%), Tata Steel (-1.01%) and Vedanta (-0.98%) were the top laggards on the sector.

This hike comes under Section 232 of the US Trade Expansion Act of 1962, a law that allows the president to impose tariffs or other trade restrictions if imports are deemed a threat to national security.

Trump originally invoked this provision in 2018 to set the 25% tariff on steel and 10% on aluminium. He raised tariffs on aluminium to 25% in February 2025.

For India, the consequences are direct, trade body Global Trade Research Initiative (GTRI) had said.

In 2024-25, India exported $4.56 billion worth of iron, steel, and aluminium products to the US, with key categories including $587.5 million in iron and steel, $3.1 billion in articles of iron or steel, and $860 million in aluminium and related articles.

The US is among the top destinations for Indian steel manufacturers, who have been gradually increasing market share through high-quality production and competitive pricing.

Meanwhile, reacting to the tariffs, top steel industry executives said India needs to be watchful of any increased risk of trade diversion into the country due to changing global tariffs. Major steel players JSW Steel and AMNS India said there is a need to implement necessary trade measures proactively as every country is protecting their industry.

NIFTY Metal slipped 1.58% during the intraday period on Monday.

In the last five trading sessions, the sector has declined 1.62%, while for a month, NIFTY Metal has gained over 8%. Year-to-date, it surged 6.4%.