Trump’s Escalated Tariffs On Indian Goods Multiply the Tension

On Tuesday, the early Indian trade faced a loss. The US Homeland Security Notification confirmed that Washington will implement a 25 percent tariff on all Indian goods due to India’s continuous purchasing of Russian oil.

The Nifty 50 and the BSE Sensex fell about 0.7 per cent each at 24,787 and 81 028.63 points. In July 3 percent drop was seen. Out of 16 major sectors, 15 traded lower. 

Washington imposed high tariffs on all Indian goods. Trump announced the tariff as a punishment for India. Early in August, India purchased Russian oil in bulk. Due to his increased purchasing of Russian oil, Trump imposed a huge tariff of upto 50 per cent.

The head of retail research at ICICI Securities, Pankaj Pandey, said, “While this is sentimentally negative for the market, we do not expect a deeper correction from hereon as it is not shocking news.”

Reliance Industries on the Nifty 50 fell about 1 per cent. Pharma products fell about 1.4 per cent while heavyweight financials fell about 1.1 per cent. 

US tariffs are expected to hit Indian major industries like textiles, chemicals, and shrimp companies. These sectors are in the red due to Trump’s increased tariffs on Indian products in the US global market.

Pandey said, “We are likely to see a sector/stock-specific market going ahead as export-oriented stocks may remain under pressure due to tariff overhang, while domestic themes could gain traction on consumption boost.”

Consumer stocks are the sole gainer in the 16 major sectors up by 0.3 per cent on Tuesday.