Donald Trump has done another war on the steel sector. The US import fee has been increased from 25 percent to 50 percent, that is, now the tariff on steel imports will take 50%. Trump believes that this new rule will give new strength to America steel. Speaking at the Mon Valley Works-Irwin plant of US Steel in Pennsylvania, Donald Trump said that this increase in tariffs will strengthen the domestic steel business.
This new tariff will be implemented from Wednesday. Apart from steel, a similar increase in aluminum tariffs is also going to happen. This step has been taken at a time when Domestic Steel prices have increased by 16 percent since Trump returned to power in January. According to the Commercial Department, Steel was priced at $ 984 per metric tonne in the US in March, which was more than Europe’s $ 690 and China’s $ 392 per metric tonne.
These countries are eyeing India
Tariff hike is going to shake global trade dynamics. Steel and aluminum exports from major producers like the European Union, China and Brazil, which are now largely out of the US market, will seek alternative routes including India. Analysts have warned of increasing risk that India, which is already struggling with global enthusiasts, can face an increase in cheap steel dumping. This can reduce domestic prices and margins.
What will be the effect on India?
A report by the Global Trade Research Initiative (GTRI) warns that the decision of US President Donald Trump to double the tariff on steel and aluminum imports is going to affect India’s 4.56 billion US dollars exports. In FY 2025, India exported iron, steel and aluminum products worth US $ 4.56 billion to the US.
It included US $ 587.5 million in iron and steel, US $ 3.1 billion in iron or steel articles and $ 860 million in aluminum and related articles. Due to increasing tariffs, it can be challenging for India to remain in the market.
These companies will have more impact
Its mixed signs are visible on India as technical signals are pointing to short-term fast, while basic pressure is hovering. Tata Steel broke the falling trendline falling with a RSI of 70.19 on the weekly chart, advising to buy at ₹ 150.90 with a target of ₹ 157.50. Due to the weakness of the European market and high cooking coal cost, its profit Q4 FY25 fell 5.61%.
In contrast, JSW Steel recorded a year-on-year growth of 15.7% in net profit with the help of cost adaptation and strong EBITDA margin, which was ₹ 1,503 crore, although its 12.43% annual return is behind 84.37% of the Nifty Metal Index, which reflects the caution related to debt and capital expenditure. In April, the sale of 18% stock decline, in the hope of increasing demand, recovered 13.6% in May and urged anti-dumping measures due to global prices falling below Rs 47,000 per tonne.
What will be the effect on the stock market
The Nifty Metal Index, which recorded a decline of 8% in April, jumped 4.78% after the US tariff suspension. Stock sectors such as Vedanta (P/E12.57) are trading below average, while 6.33% dividend yield of Hindustan Zinc is due to negative Roe. For the short term, Jindal Steel and Power shows a breakout capacity of up to ₹ 1,008, and Tata Steel remains technically stronger. In such a situation, the implementation of this tariff may show a decline in this sector.
Deal with Steel Company of Japan
Trump’s tariff decision has been taken with a big in the US Steel Nippon Steel controversy. Trump changed his stance last week after a long opposition to the prestigious steel manufacturer’s foreign owner and now deal with Japan’s Nippon Steel. However, things about the deal are still not clear. Trump told the plant employees that this famous American company will always be American company. You will be an American company, do you know this?
Federal and state officials say the agreement involves acquiring US steel by Nippon and pledging billions of dollars in facilities in five states – Pennsylvania, Indiana, Alabama, Arkansas and Minnesota. It will have an American leadership team and board, which will have a “Golden Share” mechanism, which will give Washington the right to veto on major decisions.