Novelis sees margin hit due to US metal tariffs

Novelis is likely to face challenges on account of the 25% US tariffs on steel and aluminum imports, which may in turn put pressure on margins, a senior executive said.

- URVI MALVANIA

HINDALCO'S US SUBSIDIARY

"Novelis has a plant in Canada which exports 80 KT (kilo-tonne) of auto and specialty aluminum to the US. So, there will be some impact of the tariffs on Novelis," said Satish Pai, managing director of Hindalco Industries.

As of March 12, Canadian steel and aluminum imports attract a 25% tariff in the US. While President Donald Trump had introduced the steel and aluminum tariffs in first-term in March 2018, Canadian and Mexican imports were exempt from the 25% tariff on steel and 10% tariff on aluminum under Section 232 tariffs.