In April 2025, the United States announced a steep 26% import tariff on goods from India, sparking a wave of uncertainty across global financial markets. This move has triggered a sell-off in equities, affected key sectors, and forced Indian exporters to rethink their global strategies.

In this blog, we explore the immediate impact of these tariffs on Indian markets, analyze the most affected sectors, and provide insights into how companies and investors can navigate this new trade landscape.

Market Reaction to the Tariff Announcement

The Indian stock market reacted sharply to the U.S. tariff news:

Nifty 50 fell by 3.24%,BSE Sensex dropped by 2.95% on April 7, 2025.This marked one of the biggest single-day losses in recent times, driven by fears of a global trade slowdown and declining profitability in export-heavy sectors.

However, on April 11, markets regained some ground after President Donald Trump announced a 90-day pause on the tariffs, allowing for further negotiation. Nifty rose by 1.78% and Sensex by 1.68% in response to this temporary relief.