Shares of Indian metal majors like Hindalco and Tata Steel may remain in focus on Monday after US President Donald Trump announced a steep hike in import tariffs on steel and aluminium. The tariffs, which will rise from 25% to 50%, are set to take effect from Wednesday, June 4.
The announcement was made during a rally at a steel plant in West Mifflin, Pennsylvania, where Trump emphasized the need to protect and further strengthen the U.S. steel industry. “Nobody’s going to get around that,” he said. Later, in a social media post, he claimed the increase would provide a “BIG jolt of great news” for American metalworkers.
Impact on Indian Companies
Steel
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India’s direct steel exports to the US are limited.
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However, Tata Steel Netherlands exports approximately 700,000 tons of steel to the US annually.
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Some of this steel is not manufactured in the US, and may be affected by the new tariff rules unless exempted.
Aluminium
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Hindalco’s subsidiary Novelis is one of the largest aluminium recyclers and producers in the US.
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The tariff hike could increase the Midwest premium — which might benefit domestic producers.
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However, Novelis imports some of its raw material from Canada, and the cost impact depends on whether Canada receives a tariff exemption.
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At the 25% tariff level, Novelis had earlier indicated a potential $40 million quarterly hit, expected to start in Q1 FY26.
