Shares of 10 metal and mining firms fell by 1.27% to 4.57% at 10:40 IST on BSE on uncertainty over the effects of US President Donald Trump's announcement of a plan to impose tariffs on steel and aluminum.
Steel Authority of India (down 4.57%), Jindal Steel & Power (down 4.24%), JSW Steel (down 3.81%), NMDC (down 3.63%), Hindalco Industries (down 3.31%), Hindustan Copper (down 2.82%), National Aluminium Company (down 2.67%), Tata Steel (down 2.22%), Hindustan Zinc (down 2.01%) and Vedanta (down 1.27%), edged lower.
The S&P BSE Metal index was down 2.40% at 14,670.15. It underperformed the Sensex, which was down 0.93% at 33,729.10.
Trump, on Friday, 2 March 2018, said that he would impose a 25% import tariff on steel and 10% import tariff on aluminium to protect US producers. The move could reportedly trigger a trade war with China and Europe. Trump said the import tariff hike would create jobs in the US and benefit its industries.
Gerry Rice, the International Monetary Fund's (IMF) spokesperson, issued a statement on 2 March 2018, stating that the import restrictions announced by the US President are likely to cause damage not only outside the US, but also to the US economy itself, including to its manufacturing and construction sectors, which are major users of aluminum and steel. IMF is concerned that the measures proposed by the US will, de facto, expand the circumstances where countries use the national-security rationale to justify broad-based import restrictions. IMF encourages the US and its trading partners to work constructively together to reduce trade barriers and to resolve trade disagreements without resort to such emergency measures.
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