Indian share market in red as Trump's tariffs trigger global selloff

Indian stock markets opened in the red on Thursday, reacting to global market turbulence following US President Donald Trump’s fresh tariff announcement. The Nifty 50 fell 150 points (0.64%) to 23,182, slipping below the crucial support level of 23,200, while the Sensex tumbled nearly 500 points (0.65%) to 76,120. Across Asia, markets witnessed similar trends as investors assessed the impact of the new trade policies.

The primary trigger for this selloff was Trump’s sweeping tariff policy unveiled on April 2, which introduced a universal 10% import duty on all goods entering the US from April 5. Additionally, the policy imposed higher tariffs on key trading partners, with China facing 34% tariffs, Vietnam 46%, India 26%, Japan 24%, and the European Union 20%. The UK was levied a 10% tariff, while over 60 countries were impacted.

Key sectors such as automobiles, pharmaceuticals, electronics, IT, and jewellery are expected to bear the brunt of these changes. Investors are closely watching these industries for early signs of impact. A shift in global supply chains may be inevitable, as tariff hikes could make exports from these countries less competitive.

Markets worldwide reacted sharply to the announcement. Wall Street futures plunged, with Dow Jones futures dropping over 900 points, the S&P 500 falling 3.9%, and the Nasdaq tumbling 4.7%. The ripple effect was felt across Asian and European markets, which opened lower in response to the US policy shift.

Back in India, the market sentiment remains cautious, with foreign institutional investors (FIIs) seen reducing exposure to sectors that rely on exports to the US. Domestic investors are now looking for policy responses from the Indian government to mitigate the potential impact on trade.