Metal Stocks Decline Amid Heightened US-China Trade Tariffs

Market Performance

The Nifty Metal index continued its downward trend on April 9, 2025, registering a fall of over 1.5%. This decline follows a broader correction in the sector, which has seen the index drop by approximately 11% over the past four trading sessions.

Several key metal stocks experienced declines during the session. JSW Steel, Tata Steel, Hindalco, and Hindustan Zinc recorded up to 2% losses. Over the four-session period, individual stock declines extended to 15%, affecting firms such as Tata Steel, JSW Steel, SAIL, and NALCO.

Main News

The movement in metal stocks corresponds with a significant development in international trade. The United States, under the leadership of President Donald Trump, announced a cumulative 104% tariff on imports from China, a substantial increase from previous tariff levels.

Initially, a 10% tariff was imposed on Chinese imports. This was followed by introducing a 34% surcharge targeting Chinese goods and a 10% base tariff on imports from all countries. In response to China's retaliatory 34% tariff on US goods, the US administration implemented an additional 50% tariff, resulting in the combined 104% tariff rate on Chinese imports.

Trade Tensions and Economic Impact

The increase in tariffs between the United States and China, the two largest global economies, has raised concerns about the potential effects on global economic activity. China plays a crucial role in the worldwide metal industry as a major producer and consumer. The recent tariff escalation has heightened concerns about disruptions in trade flows and potential implications for China's economic momentum.

Together, the United States and China contribute nearly 45% of global GDP. Their rising trade barriers are expected to influence international economic trends, particularly in sectors closely tied to global demand, such as metals.

Summary

• The Nifty Metal index declined 1.5% on April 9 and 11% over four sessions.
• The United States imposed a 104% cumulative tariff on Chinese imports following retaliatory actions by China.
• The tariff measures are raising concerns over global trade stability and the outlook for the metal sector.