Global Markets on Edge as Trump’s 50% Tariffs on Indian Goods Begin
Global markets are bracing for fresh turbulence after Donald Trump’s 50% tariff on Indian goods officially took effect. The move is seen as punishment for India’s continued Russian oil imports, but its ripple effects go far beyond one country.
The massive tariff hike targets billions of dollars’ worth of exports in sectors like textiles, jewelry, shrimp, chemicals, footwear, and furniture. Analysts warn that India’s export competitiveness may weaken sharply, giving trade rivals like Vietnam, Bangladesh, and Mexico a chance to grab global market share.
This sudden escalation is adding pressure to already fragile global trade. Higher costs and supply disruptions in industries such as garments and jewelry could affect multinational supply chains and raise consumer prices worldwide. Investors fear the possibility of a wider trade war, which could hit global growth at a time when economies are already slowing.
On Wall Street and other major exchanges, traders are watching closely. Equity markets have been volatile this week, and Trump’s tariff announcement may add further downside risk. The focus now shifts to whether India will retaliate with its own measures, which could spark another round of global uncertainty.
Beyond economics, this tariff battle has also soured U.S.–India relations, raising questions about long-term cooperation in areas like defense, technology, and energy. For global investors, that means more geopolitical risk on the horizon.
Impact:
Trump’s steep tariffs may boost safe-haven demand for the U.S. Dollar and Japanese Yen, while currencies of export-driven economies could come under pressure from global trade fears.
