Shares of Jindal Steel and Power, Tata Steel, and other major Indian steel producers fell [1] sharply as renewed concerns over U.S. tariffs unsettled investors. The Nifty Metal index, which includes key steelmakers, emerged as the worst-performing sectoral index, reflecting broader market unease over global trade policy shifts.
The downturn follows reports that the Trump administration is considering imposing new tariffs under a rarely used provision of the Trade Act of 1974. If implemented, these levies could reach up to 15% for 150 days, affecting steel exports and intensifying global trade tensions. The move comes amid stalled negotiations between the U.S. and China, with U.S. Treasury Secretary Scott Bessent acknowledging that a breakthrough may require direct engagement between Donald Trump and Xi Jinping.
India’s steel sector remains particularly vulnerable to such policy shifts, as companies like Jindal Steel and Power maintain significant international market exposure. However, Naveen Jindal, Chairman of Jindal Steel and Power, emphasized that India’s steel industry is primarily focused on domestic consumption, reducing direct exposure to U.S. tariffs. He noted that while the 25% tariff on steel imports has been in place since 2018, the latest policy shift could create a level playing field for Indian producers.
Despite this, heightened selling pressure was observed across steel stocks, with 14 out of 15 Nifty Metal constituents closing lower. Investors are growing increasingly cautious about the potential ripple effects of protectionist U.S. policies on global commodity trade.
Market analysts suggest that continued volatility in steel stocks is likely, with traders closely monitoring developments in Washington’s trade agenda. A clearer stance on U.S. tariff policies could provide direction, but in the meantime, uncertainty continues to weigh on sentiment.
Sources:
[1] Vedanta, Hindalco to Jindal Steel: Metal stocks melt up to 4% as Trump tariff concerns resurface https://www.livemint.com/market/stock-market-news/vedanta-hindalco-to-jindal-steel-metal-stocks-melt-up-to-4-as-trump-tariff-concerns-resurface-11748602977096.html