The market rout comes in response to Trump’s remarks made in Pennsylvania last week, where he vowed to hike tariffs on steel imports from 25% to 50%, citing national economic security. His statement followed accusations that China had reneged on prior trade commitments, sparking fears of a renewed global trade war.

“We are going to be imposing a 25% increase. We’re going to bring it from 25% to 50%—the tariffs on steel into the United States of America, which will even further secure the steel industry in the United States,” Trump declared during a rally.

The announcement sent shockwaves across global markets, with emerging economies like India facing the brunt of investor flight. Metals and manufacturing stocks led the losses on Dalal Street, while banking and auto sectors also witnessed sharp declines.

Analysts warn that the proposed tariff hike could have ripple effects, potentially impacting Indian steel exports and worsening the trade balance. It also adds uncertainty to already fragile global supply chains, just as markets were recovering from earlier disruptions.

Investors are now eyeing responses from global leaders and central banks, particularly the U.S. Federal Reserve’s stance on inflation and interest rates in light of heightened trade tensions.

With earnings reports trickling in and geopolitical risks rising, markets are likely to remain volatile, requiring cautious and strategic positioning by investors in the coming weeks.

The market rout comes in response to Trump’s remarks made in Pennsylvania last week, where he vowed to hike tariffs on steel imports from 25% to 50%, citing national economic security. His statement followed accusations that China had reneged on prior trade commitments, sparking fears of a renewed global trade war.

“We are going to be imposing a 25% increase. We’re going to bring it from 25% to 50%—the tariffs on steel into the United States of America, which will even further secure the steel industry in the United States,” Trump declared during a rally.

The announcement sent shockwaves across global markets, with emerging economies like India facing the brunt of investor flight. Metals and manufacturing stocks led the losses on Dalal Street, while banking and auto sectors also witnessed sharp declines.

Analysts warn that the proposed tariff hike could have ripple effects, potentially impacting Indian steel exports and worsening the trade balance. It also adds uncertainty to already fragile global supply chains, just as markets were recovering from earlier disruptions.

Investors are now eyeing responses from global leaders and central banks, particularly the U.S. Federal Reserve’s stance on inflation and interest rates in light of heightened trade tensions.

With earnings reports trickling in and geopolitical risks rising, markets are likely to remain volatile, requiring cautious and strategic positioning by investors in the coming weeks.