Trump’s Tariff Shock: Indian Markets Reel
The Indian stock markets experienced significant selling pressure on Thursday, August 7, 2025, following US President Donald Trump’s announcement of a further 25 per cent tariff on Indian goods. This added levy triggered immediate concerns amongst investors.
The announcement sent ripples through the market, leading to a sharp decline in key indices. Concerns over escalating trade tensions between the two nations dominated trading activity.
Analysts attributed the downturn to fears of reduced export competitiveness and potential negative impacts on India’s economic growth. The impact on various sectors, particularly those heavily reliant on US exports, is expected to be closely monitored.
The government is yet to issue an official response, but the situation underscores the growing vulnerability of the Indian economy to global trade uncertainties. The long-term implications of this tariff hike and its potential effect on bilateral relations remain a significant concern for policymakers and businesses alike. The coming days will be crucial in assessing the full extent of the damage and charting a course for mitigation.
