Overview

• The Department of Homeland Security issued a draft notice imposing an additional 25% tariff on Indian goods effective 12:01 am EDT on August 27.
• Reporting indicates the new levy combines with an earlier 25% duty, lifting U.S. charges on many Indian products to as much as 50%, including garments, jewellery, footwear, sporting goods, furniture and chemicals.
• Indian equities slumped following the announcement, with the Sensex falling 849.37 points to 80,786.54 and BSE market capitalization dropping by Rs 5.41 lakh crore.
• Sectoral damage was broad, led by realty, pharma, banking and metals, while FMCG stocks posted gains as defensives held up.
• With markets shut the next day, cues for the reopen showed GIFT Nifty down about 0.22% and Japan’s Nikkei lower by 0.5%, as FII outflows of Rs 6,517 crore contrasted with DII purchases of Rs 7,060 crore.