POTUS to impose 25% tariffs on imports of steel, aluminum; Indian equities react

By Anjali Sharma

WASHINGTON – US President Donald Trump on Monday said he plans to impose 25 per cent tariffs on all imports of steel and aluminum.

The move is seen as broadening trade salvos and threatening ties with some of America’s top trading partners.

He said the tariffs would apply to imports of the metals from all countries, and said the levies would cover everybody.

Trump also said he would announce reciprocal tariffs this week on countries that tax US imports. These would go into effect “almost immediately” after the announcement.

The exodus of Foreign Portfolio Investors from the Indian Stock Market continued unabated, as they withdrew over Rs 7,300 crore (about USD 840 million) in the first week of this month

According to the data, Foreign Portfolio Investors offloaded shares worth Rs 7,342 crore from Indian equities so far this month (till February 7).

The development came after global trade tensions, with the US imposing tariffs on countries such as Canada, Mexico, and China.

It noted that the US relies on aluminum imports, mostly from Canada, the United Arab Emirates and China.

The media reported that steel imports account for a smaller portion of consumption but are vital for sectors leaning on specialty grades not made in the US, including energy businesses from wind developers to oil drillers.

Indian equities extended their morning losses as the fear of the US President escalated trade tensions with plans to impose fresh duties on all steel and aluminum imports, along with additional reciprocal tariffs.

India Prime Minister Narendra Modi is weighing tariff concessions to ease upcoming talks with Trump and avert a full-blown trade war.

Modi is scheduled to visit the US on February 13, and will discuss trade relations, particularly tariff reductions, enhanced energy and defence cooperation, and longstanding economic issues with Trump.

He will engage with top US business leaders, including Tesla CEO Elon Musk, media reported.