09 Apr , 2025 By : Debdeep Gupta
Nifty Metal index slipped over 1.5 percent on April 9, following US President Donald Trump’s announcement of a sweeping 104 percent tariff on Chinese goods. This sharp escalation comes in response to retaliatory measures taken by China and marks a significant increase from Trump’s previous tariff levels.
Among individual counters, shares of JSW Steel, Tata Steel, Hindalco, and Hindustan Zinc saw declines of up to 2 percent on April 9.
Over the last four trading sessions, the Nifty Metal index has recorded a steep decline of 11 percent, driven by rising fears of a global economic slowdown. Individual stocks such as Tata Steel, JSW Steel, SAIL, NALCO, and others have seen losses of up to 15 percent during the same period.
Until last month, the US had maintained a tariff rate of 10 percent on Chinese imports. However, this rate surged to 44 percent after President Trump introduced a set of “reciprocal tariffs,” including an additional 34 percent on Chinese goods and a blanket 10 percent base tariff on all other countries.
These changes pushed the total tariff burden on Chinese imports to 54 percent. After China responded with a 34 percent tariff on US goods, the United States retaliated once again by slapping an extra 50 percent tariff on Chinese imports, bringing the cumulative tariff rate to an unprecedented 104 percent.
President Trump’s decision to enforce stricter trade measures against China—widely recognised as the world’s second-largest economy and a major producer and consumer of base metals—has raised fresh concerns over the fragility of China's post-pandemic economic recovery. Many fear that these aggressive tariffs could further derail China’s growth trajectory.
Experts warned that the escalating trade conflict between the world’s two largest economies, which together account for around 45 percent of global GDP, could severely impact global growth and trade flows in the coming quarters, which could put more pressure on global metal prices.
“Rising trade tariffs have significantly increased the risk of supply chain bottlenecks, elevated inflation levels, and a broader slowdown in global economic activity—all of which have put downward pressure on commodity prices,” noted analysts at Prabhudas Lilladher. “Going forward, it will be critical to monitor the extent of the global economic slowdown, the resilience of domestic demand, and whether inflation in input costs continues to be driven by disruptions in global supply chains.”
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