In a move sending shockwaves through global metal markets, the United States has announced it will double tariffs on imported steel and aluminium products starting June 4, 2025. The decision, driven by a revival of protectionist trade measures, has already rattled investors in India’s metals sector, with shares of key companies tumbling sharply in Monday’s trade.

Indian Metal Stocks Slide Amid Rising U.S. Trade Barriers

Indian steel and aluminium stocks took a significant hit following the announcement. Hindalco Industries led the decline with a 2.4% fall to ₹633.35, marking one of its sharpest intraday losses in recent months. Meanwhile, NALCO and SAIL each dropped by 2.2%, hitting lows of ₹176.40 and ₹126.40, respectively.

Other major players also felt the heat. JSW Steel and Tata Steel both slipped by 2%, while Jindal Stainless shed 1.6% to ₹633.35. NMDC and NMDC Steel dropped 1.6% and 1.5%, respectively. Jindal Steel and Power saw a 1.47% decrease, closing at ₹934.5.

The market reaction underscores growing concerns over the future of India’s metal exports, particularly to the U.S. The Indian government reported total exports of iron, steel, and aluminium products to the U.S. at $4.56 billion in FY2025. Of that, $3.1 billion came from articles of iron or steel, $860 million from aluminium products, and $587.5 million from raw iron and steel.

New U.S. Tariffs Pose Risks to India’s Export Competitiveness

This latest tariff hike — announced on May 30, 2025, under Section 232 of the U.S. Trade Expansion Act of 1962 — revives the Trump-era strategy that initially introduced tariffs of 25% on steel and 10% on aluminium in 2018. After being raised to 25% across both categories earlier this year, the duties will now double again, pushing them to a punishing 50%.

The impact extends beyond Indian exporters. Analysts expect U.S. domestic steel prices to surge past $1,180 per tonne, escalating input costs for industries like automotive, construction, and manufacturing. This could ripple across global supply chains, especially for companies sourcing materials internationally.

India has formally raised concerns at the World Trade Organization (WTO) and is reportedly considering further action. With trade tensions between the two countries once again on the rise, stakeholders are watching closely for signs of negotiation or retaliation.

For businesses in the global metals industry, this latest development underscores the importance of diversifying export markets and closely monitoring shifts in international trade policy. As the U.S. election cycle heats up, protectionist measures may become more common — and exporters need to be prepared.