10 Feb , 2025 By : Debdeep Gupta
Shares of metal companies reeled under selling pressure on February 10 after US President Donald Trump threatened to impose a 25 percent tariff on all imports of steel and aluminum later today.
Trump, speaking to reporters aboard Air Force One on Sunday, announced that the tariffs would apply to metal imports from all countries. However, he did not specify when the duties would take effect. While Trump's overall tariff ambitions remain uncertain, his threats have raised concerns over the disruption in metal supply and demand in the global markets.
Likewise, prominent metal names like Tata Steel, JSW Steel, and Hindalco Industries slipped around 3 percent in trade, grabbing a seat on the list of worst Nifty 50 performers today. Other names like Steel Authority of India, Vedanta, NMDC, NALCO, and Jindal Steel were also down 3-4 percent. The Nifty Metal index also tanked over 2 percent, making it the worst-hit sectoral index.
NIFTY Metal Top Stock Losers (Intra-day)
Trump's tariffs on aluminum and steel pose significant challenges for global metal companies, as they raise the cost of exporting to the US, making foreign metals less competitive and thereby impacting demand. Additionally, higher costs of exports to the US can also squeeze margins for exporters.
Moreover, with restricted access to the US market, global metal producers may struggle with excess supply, driving down prices and profitability. These factors collectively contribute to a selloff in metal stocks as investors fearan adverse impact on revenue and earnings for the sector.
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