Why auto parts, steel, copper, aluminium stocks may not react to Trump tariff verdict
Tariffs imposed by the US on steel, aluminium and copper, including semi-derivative and finished copper, stayed at 50 per cent each. Automobiles and auto parts may continue to attract 25 per cent tariffs.
- Feb 23, 2026,
- Updated Feb 23, 2026 8:51 AM IST
US tariffs imposed under Section 232 and Section 201 remained unaffected even after the US Supreme Court struck down President Trump’s IEEPA reciprocal tariffs, a move that was followed by a 15 per cent headline global tariff under Section 122.
Tariffs imposed by the US on steel, aluminium and copper, including semi-derivative and finished copper, stayed at 50 per cent each. Automobiles and auto parts may continue to attract 25 per cent tariffs. Lumber and wood products may continue to attract 10-25 per cent tariffs, while medium and heavy trucks at 25 per cent and buses at 10 per cent will also see no change in taxes, as they fall under Section 232.
The section allows Trump to impose tariffs on specific imported goods if the Department of Commerce finds these threaten national security. Emkay Global said the section has strong legal footing as it is backed by Department of Commerce investigations.
"The extent of effective relief hinges on countries’ export dependence on Section 232 goods (steel, aluminium, copper, autos, etc). After China, Vietnam, Japan, and South Korea are the most affected by these duties, with Japan and Korea particularly affected as the US is their primary auto export market (despite a lower negotiated Section 232 tariff of 15 per cent on their auto exports). For others, including India, exposure is mainly indirect, via steel and aluminium in manufactured goods," Emkay Global said.
Even in the case of other imports, Trump has announced a blanket 15 per cent tariff under Section 122, which allows for temporary import restrictions for up to 150 days to address ‘large and serious’ BoP deficits.
"We note that this action may face legal challenges as well, while extension beyond 150 days will require Congressional approval – a tricky scenario ahead of midterm elections in Nov-26," Emkay Global said.
With these overnight developments, 55 per cent of India’s exports will now face only 15 per cent tariffs, while 40 per cent from sectors such as electronics, pharma, and petroleum products will remain exempt.
"The rest will face their respective Section 232 tariff rates, but India does not export much of these goods to the US. As a result, India’s effective tariff rate is now likely to be 11-13 per cent," Emkay said.
US tariffs imposed under Section 232 and Section 201 remained unaffected even after the US Supreme Court struck down President Trump’s IEEPA reciprocal tariffs, a move that was followed by a 15 per cent headline global tariff under Section 122.
Tariffs imposed by the US on steel, aluminium and copper, including semi-derivative and finished copper, stayed at 50 per cent each. Automobiles and auto parts may continue to attract 25 per cent tariffs. Lumber and wood products may continue to attract 10-25 per cent tariffs, while medium and heavy trucks at 25 per cent and buses at 10 per cent will also see no change in taxes, as they fall under Section 232.
The section allows Trump to impose tariffs on specific imported goods if the Department of Commerce finds these threaten national security. Emkay Global said the section has strong legal footing as it is backed by Department of Commerce investigations.
"The extent of effective relief hinges on countries’ export dependence on Section 232 goods (steel, aluminium, copper, autos, etc). After China, Vietnam, Japan, and South Korea are the most affected by these duties, with Japan and Korea particularly affected as the US is their primary auto export market (despite a lower negotiated Section 232 tariff of 15 per cent on their auto exports). For others, including India, exposure is mainly indirect, via steel and aluminium in manufactured goods," Emkay Global said.
Even in the case of other imports, Trump has announced a blanket 15 per cent tariff under Section 122, which allows for temporary import restrictions for up to 150 days to address ‘large and serious’ BoP deficits.
"We note that this action may face legal challenges as well, while extension beyond 150 days will require Congressional approval – a tricky scenario ahead of midterm elections in Nov-26," Emkay Global said.
With these overnight developments, 55 per cent of India’s exports will now face only 15 per cent tariffs, while 40 per cent from sectors such as electronics, pharma, and petroleum products will remain exempt.
"The rest will face their respective Section 232 tariff rates, but India does not export much of these goods to the US. As a result, India’s effective tariff rate is now likely to be 11-13 per cent," Emkay said.