Sensex, Nifty crash as US steel tariffs weigh on markets

The Indian stock market crashed on Tuesday, with the Sensex and Nifty falling over 1.3% in the afternoon trade, as US President Donald Trump formally announced plans to impose 25% tariffs on all steel and aluminium imports. 

In the afternoon trade, the Sensex tumbled nearly 1,000 points, or 1.25%, to around 76,300, while the Nifty slipped 300 points, or 1.3%, falling below the 23,100 mark.

The broader market suffered even more, with midcap and smallcap indices plunging as much as 3.5% amid deeper concerns beyond blue-chip stocks.

The ongoing market decline comes after former US President Donald Trump signed executive orders on February 10 to expand tariffs on steel and aluminium imports from March 12.

The move raised aluminium tariffs from 10% to 25% and reinstated a 25% tariff on steel imports.

Key trading partners like Canada, Mexico, and Brazil lost their exemptions, fueling fears of a wider trade war and impacting global economic growth.

Meanwhile, the Indian Steel Association (ISA) has expressed deep concern over the US decision to impose tariffs on steel imports, urging the Indian government to push for the removal of long-standing anti-dumping and countervailing duties and to secure exemptions from these restrictive measures.

The latest tariff is expected to slash steel exports to the US by 85%. These tariffs could lead to a massive steel surplus that will likely flood the Indian market, ISA warned.

(This story was taken from a syndicated feed and was only edited for style by Gujarat Samachar Digital team)

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