The Indian stock market plunged on Tuesday following U.S. President Donald Trump’s announcement of a 25% tariff on steel and aluminum imports. By 1:41 PM, the Sensex had dropped 1,038 points (1.25%), while the Nifty was down by over 327 points (1.3%).

Trump’s new tariffs, set to take effect on March 4, significantly increase duties on aluminum from 10% to 25% and apply broadly, including to top suppliers Canada and Brazil. The move comes just two days before Prime Minister Narendra Modi's scheduled visit to the U.S., where trade tensions will likely be a key agenda item.

Ahead of the meeting, Modi emphasized the importance of strengthening India-U.S. ties, stating, “This visit offers an opportunity to build upon our past successes and further deepen our partnership.” However, the visit will take place amid a diplomatic strain over the U.S. deportation of 104 Indian immigrants living illegally in the country.

Impact of Trump’s Tariffs
Trump argues the tariffs will curb efforts by Russia and China to bypass existing duties while boosting American jobs. However, the policy has sparked concerns worldwide.

For India, the tariffs could disrupt aluminum exports, as the U.S. remains a top market. Industry experts suggest companies like Vedanta and Hindalco may need time to find alternative buyers. Meanwhile, Canadian steelmakers have warned of “massive disruption,” and the European Commission has vowed to protect its businesses.

India in Trump’s Trade War
Trump has previously accused India of being a “very big abuser” in trade and imposed tough policies. In response, India recently cut import duties on U.S. goods like luxury cars and smartphones, benefiting firms like Harley-Davidson and Apple.

As Trump’s second term unfolds, his aggressive tariff stance signals more turbulence ahead in global trade relations.

The Indian stock market plunged on Tuesday following U.S. President Donald Trump’s announcement of a 25% tariff on steel and aluminum imports. By 1:41 PM, the Sensex had dropped 1,038 points (1.25%), while the Nifty was down by over 327 points (1.3%).

Trump’s new tariffs, set to take effect on March 4, significantly increase duties on aluminum from 10% to 25% and apply broadly, including to top suppliers Canada and Brazil. The move comes just two days before Prime Minister Narendra Modi's scheduled visit to the U.S., where trade tensions will likely be a key agenda item.

Ahead of the meeting, Modi emphasized the importance of strengthening India-U.S. ties, stating, “This visit offers an opportunity to build upon our past successes and further deepen our partnership.” However, the visit will take place amid a diplomatic strain over the U.S. deportation of 104 Indian immigrants living illegally in the country.

Impact of Trump’s Tariffs
Trump argues the tariffs will curb efforts by Russia and China to bypass existing duties while boosting American jobs. However, the policy has sparked concerns worldwide.

For India, the tariffs could disrupt aluminum exports, as the U.S. remains a top market. Industry experts suggest companies like Vedanta and Hindalco may need time to find alternative buyers. Meanwhile, Canadian steelmakers have warned of “massive disruption,” and the European Commission has vowed to protect its businesses.

India in Trump’s Trade War
Trump has previously accused India of being a “very big abuser” in trade and imposed tough policies. In response, India recently cut import duties on U.S. goods like luxury cars and smartphones, benefiting firms like Harley-Davidson and Apple.

As Trump’s second term unfolds, his aggressive tariff stance signals more turbulence ahead in global trade relations.