Why Are Metal Stocks Tata Steel, JSW Steel, Hindalco, SAIL, NMDC Under Pressure?

Metal Stocks Today: Metal stocks were under pressure today, following rising trade tensions between India and the United States. As of 12:26 PM, the BSE Metal index was trading at 30,056.92, down by 63.06 points or 0.21% from the previous close of 30,119.98.

The index had opened slightly higher at 30,136.48, touched a high of 30,192.24, and dropped to a low of 29,882.08 during the session.

Top Metal Stocks Losers 

Most major metal stocks were trading in the red. Hindalco led the losses, falling by 1.61%, followed by SAIL (down 1.06%), Hindustan Zinc (down 0.94%), Tata Steel (down 0.69%), JSW Steel (down 0.49%), NMDC (down 0.26%), and National Aluminium (down 0.06%).

The Nifty Metal index also declined by 0.24%, with 8 stocks declining and only 7 advancing, reflecting weak investor sentiment in the metal sector.

The main reason behind this negative mood is India’s announcement to the World Trade Organisation (WTO) about its plan to impose retaliatory tariffs on U.S. goods. This move comes after the U.S. extended safeguard duties on steel, aluminium, and related products.

Also Read: Why Are BSE Sensex And Nifty 50 Falling Today After Monday’s Big Rally?

US Tariff On Steel And Aluminium

The U.S. had earlier imposed a 25% tariff on steel and 10% on aluminium in March 2018 through Presidential Proclamations No. 9704 and 9705.

These duties were later extended in January 2020 and again on February 10, 2025, under Proclamations No. 10895 and 10896. The latest extension came into effect on March 12, 2025.

India estimates it has suffered a loss of about USD 1.91 billion due to these duties, which have impacted USD 7.6 billion worth of Indian exports.

India now plans to suspend trade concessions under Article 8.2 and 12.5 of the WTO’s Agreement on Safeguards and impose equivalent tariffs on U.S. products if the issue is not resolved within 30 days.

India argues that the U.S. has not notified these duties as safeguard measures, but they function as such. Since no consultations have taken place under WTO rules, India is taking this step to protect its exporters.