Indian stock markets opened lower on Tuesday, reacting to global concerns after former US President Donald Trump announced new tariffs.
On Monday, Trump stated that a 25 per cent tariff on goods from Mexico and Canada would take effect on Tuesday, sparking fears of a trade war in North America and unsettling financial markets worldwide.
Market reaction
At 9:16 am, 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.
Expert opinion
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said that Trump's tariff policy is creating more uncertainty in global trade.
"With a 25% tariff on Canada and Mexico and an additional 10 per cent on China, trade tensions are escalating. The response from affected countries is yet to be seen, but countermeasures are expected," he said. He warned that if Trump continues with these policies, it could harm global trade and economies, including India.
Possible market impact
According to Vijayakumar, market reactions may force Trump to reconsider his approach. Higher tariffs could push up inflation in the US, prompting the Federal Reserve to take a more aggressive stance on interest rates. If this happens, the US stock market, currently at high valuations, could see a sharp correction or even a crash—an outcome Trump would likely want to avoid.
Advice for investors
In the short term, there is little chance of a strong rebound in Indian markets despite fair valuations. Experts suggest that investors remain cautious and wait to see how the situation develops before making major decisions.
Also Read: Trump tariffs spark market chaos, Nifty set to drop further
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