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News Update As per media sources, US government has imposed 25% tariff on all steel and alumin...

Posted: 11 Feb 2025

News Update As per media sources, US government has imposed 25% tariff on all steel and aluminium imports. It has also reversed the previous exemptions which were being earlier granted to allied natons such as Canada, Mexico, and Brazil. On the exports front, as per media sources, US accounted for ~5% of steel exports from India while in the case of Aluminium that share is pegged at ~11-12%. Our View India is expected to face minimal impact from these tariffs. However, with the imposition of duties on all exporting nations, there is an increased chance of dumping of steel and aluminum inflows into India, particularly from Japan and Vietnam, which are among the U.S.'s major trading partners. On the front, we will continue to monitor the development as we expect these rigorous tariffs to be short-lived as it has cascading effects on the overall global trades and supply chain. With Nifty metal index already down 3% in yesterday's trade, we don't expect metal stocks to react further negative to this development.