Trump’s ‘Tariff Bomb’ Shakes Global Stock Markets: Impact on India
Donald Trump’s Tariff Bomb Effect on Stock Markets:
U.S. President Donald Trump has announced reciprocal tariffs on India and several other countries, leading to a major sell-off in Asian markets. Trump has imposed a 26% tariff on India, which could negatively impact Indian stock indices like Sensex and Nifty due to weak global cues.
Is This a Concern for Indian Stock Markets?
On the last trading day, Sensex and Nifty showed strong performance, but after Trump’s tariff announcement, Asian markets may experience panic selling on Thursday.
Investor Panic Over Reciprocal Tariffs
Trump’s reciprocal tariff announcement has sent shockwaves across the globe. He has referred to this move as a “Liberation Day” and released a detailed list specifying the tariff rates for different countries:
- China: 34%
- European Union: 20%
- Japan: 24%
- India: 26%
Following this announcement, Asian markets have tumbled, with Japan being the worst affected.
Asian Markets in Panic Mode
After the reciprocal tariff announcement:
- Japan’s Nikkei Index plunged 4.6% to 34,102, its lowest in eight months.
- South Korea’s Kospi Index dropped nearly 3% at the opening.
- Hong Kong’s Hang Seng Index fell to 23,094, trading in the red zone.
- Australia’s S&P/ASX 200 declined by 1.55%.
Impact on Sensex and Nifty
Experts predict a gap-down opening for Sensex and Nifty.
- Sectors like Auto, IT, and Pharma may suffer the most.
- Pharma exports to the U.S. could be severely impacted, as higher tariffs may reduce earnings.
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While the exact tariff breakdown is yet to be revealed, India’s pharmaceutical industry is expected to be among the hardest hit.
