Overview
- President Trump’s executive order lifting duties on drugs and chips left total tariffs at 50%, effective August 7, hitting export-oriented sectors with steep new levies.
- Indian benchmarks opened sharply lower—Nifty futures down about 0.3%—before rebounding to close higher, with the Sensex swinging nearly 925 points intraday.
- Pharmaceuticals and semiconductors were exempted under U.S. trade law, while textiles, automobiles and leather exporters face the full 50% duty.
- Asian equities climbed on tech-led Wall Street gains and growing expectations of Federal Reserve rate cuts, shrugging off the tariff shock.
- Investors are now focused on potential U.S.-India diplomatic talks and forthcoming Fed policy signals to determine how markets will fare next.