Former U.S. President Donald Trump is expected to announce a fresh wave of import tariffs on nearly a dozen countries, including India. This anticipation has triggered sharp declines in Asian markets and led to a ₹1,421 crore Foreign Portfolio Investor (FPI) sell-off in Indian equities on Monday.

Tariffs May Target 12 Countries

Sources suggest Trump could impose tariffs ranging from 10% to 60% on imports from:

• India

• China

• Vietnam

• Japan

• Germany

• Mexico
  …and several other key economies.

The move is seen as a return to his earlier protectionist trade policies and may be part of his 2024 U.S. presidential campaign strategy.

Asian Markets React Sharply

Major Asian indices opened lower:

• Nikkei 225

• Hang Seng

• KOSPI

In India, Sensex dropped 511 points, Nifty fell 146 points, and the rupee weakened against the U.S. dollar.

FPI Sell-Off Reverses June Gains

Analysts say investors are turning risk-averse amid rising global trade uncertainty.

Sectors at Risk

Exports, IT, and textiles are likely to be affected if tariffs are imposed.
India’s goal of becoming a global manufacturing hub may also face setbacks.

Domestic Impact Grows

• Stock market volatility rises

• Import-export costs may surge

• Investors seek clarity from the government

Sectors like automobiles, FMCG, and banking saw heavy selling during the trading session.

Global Trade War Fears

A return to unilateral tariffs may:

• Spark retaliation

• Disrupt supply chains

• Challenge the WTO framework

It also raises doubts about the global economic recovery amid post-pandemic challenges.

Expert View

“India must diversify exports and strengthen regional trade”, says economist Anjali Mehra.

“Policy cushioning is needed to prevent panic selling,” adds market analyst Vivek Sharma.

The tariff talk has rattled financial markets across Asia. With foreign investors pulling back, Indian policymakers may need to act quickly to stabilize investor confidence and prepare for a potential trade turbulence ahead.