Metal Stocks Like Vedanta, Hindustan Zinc, Tata Steel Fall up to 4% as Trump Hikes Steel Import Duty

On June 2, 2025, the Nifty Metal index fell 1.6% to 9,047.95 after former US President Donald Trump announced a steep increase in steel import duties, sparking concerns among Indian metal exporters and investors.

Cat: Stock 

Trump Doubles Steel Import Tariffs

Speaking at a steel plant in Pennsylvania, Trump announced that import tariffs on steel and aluminium would be increased from 25% to 50%, starting Wednesday, June 4. He said the move would significantly boost American industries, calling it a major win for steel and aluminium workers. Trump later confirmed the decision through a post on social media.

India’s Exporters Hit Earlier by Tariffs

Earlier this year, Trump increased steel and aluminium tariffs to 25%. Following that, Indian exporters had raised concerns with the Ministry of Commerce, citing a $5 billion impact on exports.

Biggest Losers on Nifty Metal Index

Most metal stocks traded in the red, with Lloyds Metals and Energy falling the most, over 4% to ₹1,332.60. Other major stocks that dropped included:

• JSW Steel: Down 2.44% to ₹969.25
• Hindustan Zinc, Vedanta, Tata Steel: Fell close to 4% each

Few Stocks Gained Despite the Decline

Some stocks bucked the broader trend and managed small gains:

• Adani Enterprises gained 1.03%.
• National Aluminium Company (NALCO) gained 0.26%.
• Welspun Corporation gained 10%. 

Read More, Sensex Fell ~200 Points to 81,258: Tata Motors, Ultratech Tumbled Heavily.

Nifty Metal Index: Recent Performance Snapshot

• Down 2.25% in the last 5 trading sessions
• Up 7% over the last 1 month
• Flat in the past 6 months
• Down over 9% in the last 1 year

Conclusion

Trump’s sharp increase in US steel import tariffs triggered a strong selloff in Indian metal stocks. Hindustan Zinc, Vedanta, and Tata Steel each dropped nearly 4%, while the Nifty Metal index also saw a notable decline, making it one of the sector’s weakest trading sessions in recent weeks. As global trade tensions escalate, metal stock investors should stay alert to potential shifts in international policies.

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