Tue Feb 11 12:27:27 UTC 2025: ## Stock Market Plunges After Trump Announces Steel and Aluminum Tariffs
**New Delhi/Washington D.C. –** The Indian stock market experienced a significant downturn on Tuesday, following US President Donald Trump’s announcement of a 25% tariff on imported steel and aluminum. The Sensex plummeted 1,038 points (1.32%), while the Nifty fell over 300 points (also around 1.32%). The tariffs, effective March 4th, apply to all imports, including those from major suppliers like Canada and Brazil.
This announcement comes just two days before Prime Minister Narendra Modi’s scheduled meeting with President Trump. While PM Modi expressed hope for strengthening bilateral ties, the upcoming meeting is also overshadowed by a recent political controversy surrounding the deportation of 104 Indian immigrants from the US.
Trump’s justification for the tariffs centers on combating what he claims are unfair trade practices by countries like Russia and China, and boosting American jobs and domestic production. While India is a relatively minor steel supplier to the US, it is a major aluminum producer, with the US being its largest export market. Industry executives anticipate a significant drop in aluminum exports to the US as a result. The move has already prompted warnings of substantial disruption from Canadian steelmakers and a pledge from the European Commission to protect European interests. Approximately 25% of European steel production is exported to the US.
This is not the first time Trump has implemented such tariffs. Similar measures were introduced during his first term, though some concessions were later made to countries like Canada and Mexico. His second term, however, has seen an escalation of his protectionist trade policies. He has previously criticized India’s trade practices, and recently levied tariffs on imports from Canada and Mexico (later paused) and China, prompting retaliatory tariffs from Beijing. Despite India’s recent reduction in import duties on certain American products, Finance Minister Nirmala Sitharaman clarified that this was not a direct response to Trump’s tariff announcements. The long-term economic impact of Trump’s latest tariffs remains to be seen, particularly given the negative impact of similar tariffs implemented during his first term.
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