Trump’s Trade Strike: 25% Tariff on Indian Goods
On July 31, 2025, U.S. President Donald Trump made headlines with a dramatic trade policy announcement targeting India. Effective August 1, all goods exported from India to the U.S. will face a steep 25% tariff. More concerning is an additional, unspecified penalty slapped on India for its continued import of Russian crude oil and military equipment.
India, now the first country to be penalized for buying from Russia, finds itself cornered at a critical geopolitical juncture.
Why the Sudden Move?
The U.S. administration has voiced displeasure over India’s growing defense and energy ties with Russia. Despite ongoing trade negotiations, Washington’s sudden imposition of tariffs appears to be a strategic move to pressure India into aligning more closely with Western economic policies.
Stock Markets in Shock: Sensex and Nifty Take a Nosedive
The impact was immediate and brutal. At the opening bell, the BSE Sensex crashed 786.36 points to 80,695.50, while the NSE Nifty plummeted 212.8 points to 24,642.25. Major firms including Reliance Industries, Tata Motors, Mahindra & Mahindra, Bharti Airtel, and State Bank of India were among the top losers.
However, some defensive stocks like Hindustan Unilever, ITC, and Power Grid held their ground and managed to trade in the green.
Expert View: Short-Term Pain, Uncertain Future
V.K. Vijayakumar, Chief Investment Strategist at Geojit Investments, commented,
“This is very bad news for Indian exports and near-term economic growth. While trade talks continue, this tariff will cause immediate damage to investor confidence and export competitiveness.”
Foreign Institutional Investors (FIIs) also seemed to echo this sentiment, offloading equities worth ₹850.04 crore the day before the announcement.
Global Market Reactions
The tremors were not limited to India. Asian markets like South Korea’s Kospi, Shanghai’s SSE Composite, and Hong Kong’s Hang Seng also opened lower. Only Japan’s Nikkei 225 held positive ground. In the U.S., markets closed largely in the red, reflecting broader uncertainty.
Meanwhile, oil prices—always sensitive to geopolitical maneuvers—saw a minor dip. Brent crude slipped 0.19% to $73.10 per barrel.