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3w ago

Trump’s 25% Tariffs Weigh on Indian Stocks, Trigger Asia-Pacific Sell-Off

Taking effect on August 7, the tariffs have already pressured India’s rupee, driving benchmark indexes into the red.

A trader works on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., July 30, 2025. REUTERS/Jeenah Moon
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The Dow was on track to closer lower every day this week.
Women holding umbrellas stand in front of a stock quotation board outside a brokerage in Tokyo, Japan June 30, 2025. REUTERS/Issei Kato/File Photo

Overview

  • President Trump signed an executive order imposing 25% tariffs on U.S.-bound Indian exports, effective August 7, with additional levies linked to India’s energy purchases.
  • India’s benchmark indices fell sharply on August 1, with the Sensex dropping 586 points to about 80,600 and the Nifty sliding 203 points to 24,565.
  • Foreign portfolio investors sold ₹5,588.91 crore of Indian equities while domestic institutional investors bought ₹6,372.71 crore, reflecting a shift in capital flows.
  • The offshore rupee weakened by nearly 1%, trading at its weakest forward level since February on renewed trade-policy uncertainty.
  • MSCI’s Asia-Pacific index declined around 0.4% as regional markets extended losses and investors awaited U.S. jobs data for clues on the Fed’s next move.