Metal Stocks: ....so due to this reason the shine of metal stocks faded today, fell by 2%

News Topical, Digital Desk : On the first day of the week, June 2, metal stocks are witnessing a huge sell-off. There is a big reason for the fall in these stocks today. US President Donald Trump announced that the tariff on imported steel will be doubled from June 4, 2025. The tariff on steel imported into the US will increase from 25% to 50%, which will come into effect from June 4. This will increase pressure on global steel producers and deepen trade tensions. Trump announced this at a rally of US Steel in Pennsylvania on May 30.

He also referred to a pending agreement between Nippon Steel and US Steel, claiming that the deal would lead to "no layoffs or outsourcing," although the agreement is not yet final. The Nifty Metals index was down 1.1% at 9,090. The biggest losers in the index were JSW Steel, Tata Steel and SAIL, which fell 1.5 to 2%.

What is the whole matter?
The tariff hike could further escalate Trump's global trade tensions. According to a Reuters report, the announcement came hours after Trump accused China of violating an agreement with the US to reduce tariffs and trade restrictions on critical minerals. An EU spokesperson said, "We deeply regret the announcement of tariffs on US steel imports from 25% to 50%." He said the move undermines the possibility of a "negotiated solution." The EU confirmed that if the situation does not improve, it will re-impose and expand its countermeasures. NBC News quoted the spokesperson as saying, "If no solution is found, existing and additional EU measures will automatically apply from July 14, or earlier as circumstances dictate." The EU had earlier halted its retaliatory measures on April 14 to make room for negotiations. Talking about China, Trump said that America's future should be built with the "strength and pride of Pittsburgh" and not depend on "inferior steel from Shanghai". VK Vijayakumar, Chief Investment Strategist, Geojit Investments said, "Global headwinds like new tariff concerns will prevent a sharp rally in the market. At the same time, domestic support will support the market at lower levels. Trump's 50% tariff on steel and aluminum is a clear message that the tariff and trade scenario will remain uncertain and volatile. This headwind will impact the markets."

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