“Any steel coming into the United States is going to have a 25 per cent tariff,” he told reporters on Sunday on Air Force One as he flew from Florida to New Orleans to attend the Super Bowl. When asked about aluminium, he responded, “aluminum, too” will be subject to the trade penalties.
However, he did not offer any details about the steel and aluminium duties, or the reciprocal tariffs.
Prominent metal stocks like SAIL and Vendanta are among the biggest losers and fell over 4 per cent. Other names like Tata Steel, JSW Steel and Hindalco Industries also slipped around 3 per cent in trade.
Here's what expert says
According to Anuj Gupta of IIFL Securities, the sharp fall in the metal stocks is because of US President Donald Trump's statement wherein he threatened to impose 25 per cent tariffs on all steel and aluminium imports.
"Metal index has nosedived because of Trump's statement on imposing a 25 per cent tariff on all imports of steel and aluminium. The uncertainty will be there but it is tough to predict for how long," Gupta said.
"Investors should opt to wait and watch policy for now and should avoid investing in metal stock for now," he added.
Trump's tariff threat
The US President previously threatened 25 per cent import taxes on all goods from Canada and Mexico, though he paused them for 30 days barely a week ago. At the same time, he proceeded to add 10 per cent duties on imports from China.
Trump has alternately said he sees import taxes as tools to force concessions on issues such as immigration, but also as a source of revenue to help close the government's budget deficit.
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