Trump’s tariffs shake global markets; Sensex sinks 368 points, Nifty below 22,000

Global stock markets slumped on Tuesday after former U.S. President Donald Trump announced a 25% tariff on imports from Mexico and Canada, sparking fears of escalating trade tensions. The move comes alongside an additional 10% tariff on Chinese goods, adding to existing trade disputes. Investors reacted sharply, with major indices witnessing a significant selloff. The S&P BSE Sensex fell 368.03 points to 72,717.91, while the NSE Nifty50 dropped 136.30 points to 21,982.70 at 9:16 AM.

Market experts pointed to rising uncertainty in global trade. Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, stated, “The 25% tariff on Canada and Mexico and the 20% tariff on China (with the additional 10% imposed now) kicking in—the threats are turning into action. The retaliation to these Trump tariffs is yet to be known. Certainly, there will be responses.” The announcement has raised concerns about potential countermeasures from affected countries, which could further disrupt trade flows.

The U.S. stock market, which has been trading near all-time highs, also saw a downturn as investors weighed the impact of tariffs on corporate earnings and inflation. Analysts noted that if tariffs continue to rise, they could push inflation higher in the U.S., potentially prompting the Federal Reserve to adopt a more aggressive monetary policy stance. Higher interest rates could further strain global equity markets and impact investor sentiment.

Indian markets mirrored the global reaction, with key sectors such as IT, automobiles, and metals experiencing declines. Experts indicate that prolonged trade uncertainties could dampen market sentiment, leading to increased volatility in emerging economies. While valuations in India remain stable, investors are expected to remain cautious until more clarity emerges on global trade policies.

With no immediate resolution in sight, markets are likely to remain under pressure in the near term. Analysts are closely watching potential retaliatory measures from affected nations and further policy announcements from the U.S. government. Investors are advised to track developments carefully as global financial markets navigate heightened trade uncertainties.