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US President Donald Trump’s controversial tariffs have sent shockwaves throughout global markets, causing the Indian equity markets to hit a 10-month low and erasing more than ₹20 lakh crore in investor wealth within moments. The Sensex plunged nearly 4,000 points at the opening, dropping over 3.5% since its last trading session, while Nifty saw a drastic fall of over 1,000 points early this morning. This sharp market decline comes on the heels of a major sell-off in Asian equities, triggered by Trump’s aggressive trade policies, with US futures also pointing toward significant losses when markets reopen later today.
Trump’s tariffs, which he claims are essential to address unfair trade practices, have raised fears globally. The tariffs, aimed at specific countries, can be as high as 50%, with India facing a rate of 26%. Additionally, a baseline 10% tariff has been imposed on all countries. These measures have caused widespread concern among exporters and traders.
Trump, unfazed by the turmoil in global markets, brushed off the carnage, calling the tariffs necessary “medicine” to fix the economy during a press conference this morning.
As trading resumed after the weekend break, Indian equities were hit hard. The Sensex plummeted by 3,939.68 points, reaching 71,425.01, while Nifty collapsed by 1,160.8 points to 21,743.65. By 10 am, the Sensex had fallen over 2,700 points, and Nifty hovered just above the 22,000 mark.
The Indian Rupee also weakened, opening at 85.74 against the US dollar, a decline of 30 paise.
Market analysts predict that Trump’s tariffs were always likely to generate fear in Indian markets. Experts warn that India needs immediate fiscal, monetary, and reform-based action to safeguard its economy from the global trade turbulence.
Ajay Bagga, a market expert, stated, “India is facing pressure not because of domestic issues, but because it’s deeply integrated into the global economic system. The country will need a comprehensive fiscal and reform package to protect its economy from the looming global economic downturn.”
Sunil Gurjar, a SEBI-registered research analyst, added that Nifty50 has breached its first support level and is approaching the second. A further breakdown could push the market into deeper losses.
Asian markets, the first to react to the tariffs, have been particularly hard hit. China’s stock market saw a sharp decline of over 4%, with the Hang Seng index in Hong Kong dropping by more than 10%. Japan’s Nikkei index fell by at least 6.5%, after an earlier plunge of over 8%. Taiwan’s main index collapsed nearly 10%, and Singapore’s market suffered losses exceeding 8%.
This widespread collapse across Asia signals a grim outlook for global markets, with US futures also indicating substantial losses when the New York Stock Exchange reopens.
The market carnage sparked by Trump’s trade policies has raised fears of a potential global recession. Stephen Innes, from SPI Asset Management, warned that the world economy could be heading for a downturn. “The market is in free-fall mode, breaking through critical levels. Trump’s administration seems unbothered by the market chaos, treating tariffs as a victory, not a bargaining tool.”
As the global financial system reels from Trump’s radical tariffs, the coming weeks could hold more uncertainty for markets worldwide. With investors scrambling to assess the full impact, all eyes remain on the US and its next moves in the ongoing trade war.
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