Tata Steel, JSW Steel Slide Amid US-China Trade War Fears, Tata Steel declines by 0.54%, JSW by 1.01%

Metal stocks faced renewed selling pressure on April 17, 2025, as escalating trade tensions between the US and China fueled concerns about a potential global economic slowdown. Tata Steel and JSW Steel, two of India’s leading steel manufacturers, experienced declines amid this broader market unease.

Performance of Tata Steel and JSW Steel

Tata Steel’s shares declined by 0.54% to ₹136.18, while JSW Steel fell by 1.01% to ₹999.20 during intraday trading on the NSE. Analysts attribute the selling pressure to fears that a protracted trade war could dampen global demand for metals, impacting the profitability of metal manufacturers. Additionally, concerns about potential oversupply and lower export opportunities have weighed on investor sentiment.

US-China Trade Tensions Weigh on Metal Sector

The Nifty Metal index snapped a two-day rally, reflecting investor anxieties triggered by US President Donald Trump’s order to probe potential new tariffs on U.S. critical minerals imports. This move is widely viewed as an escalation in the trade dispute with China, the world’s top producer of many critical minerals.

The metal sector has been highly volatile in recent weeks, reacting sharply to tariff announcements and subsequent pauses. The high duties imposed by the US have raised concerns about the dumping of metal products into countries like India, potentially harming domestic players.

Broader Implications

The US administration’s efforts to pressure trading partners to reduce ties with China, as reported by the Wall Street Journal, could further destabilize global trade flows. American officials are reportedly urging over 70 countries to block China from routing goods through their territories and to prevent Chinese companies from setting up operations to bypass U.S. tariffs. This environment of trade uncertainty necessitates a cautious approach to the metal sector. 

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