Steel stocks in focus on Trump’s plans to impede 25% tariffs

The shares of steel and aluminum companies like Tata Steel and JSW Steel among others may remain in focus on Monday after US President Donald Trump announced his plans to impose new 25% tariffs on all steel and aluminium imports.

This may impact companies like Tata Steel, JSW Steel, Jindal Steel and Power, SAIL, Jindal Stainless and NMDC.

Trump also said he will announce reciprocal tariffs on Tuesday or Wednesday, applying them to all countries and matching the tariff rates levied by each country.


The move adds to jitters over a global trade war, with China's retaliatory duties on U.S. goods due to take effect on Monday.

Trump last week kicked off a trade war, first by imposing tariffs on Mexico and Canada and then pausing them, but sticking with duties on Chinese goods. That led to a measured tit-for-tat response from Beijing suggesting some room for negotiations.

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As per previous ET reports, analysts have said that tariffs could be inflationary and put further pressure on the Fed to keep interest rates elevated. Markets are pricing in 36 basis points of cuts this year, down from 42 bps after an upbeat payrolls report on Friday.

Macquarie strategists said the January employment report sends an upbeat message about the labour market and overall economic growth but the elevated uncertainty has led the firm to change its view on the Fed's policy path this year.

Post this update, the dollar firmed. The dollar index, which measures the U.S. currency against six other units, was steady at 108.40 in early trading.

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