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Mkt tumbles as US tariff offsets RBI rate pause
August 07, 2025
|The New Indian Express Vellore
DOMESTIC equity market closed slightly lower on Wednesday as investors grew cautious following US President Donald Trump's threat on Tuesday to substantially raise tariffs on Indian goods within 24 hours.
This was in response to India's continued imports of Russian oil. Trump acted on his word and on Wednesday signed an executive order imposing an additional 25% tariff on India, raising the total tariff on Indian goods imported by the U.S. to 50%.
Experts believe this tariff increase will negatively impact India's outbound trade to the U.S., which is valued at nearly $100 billion. The move is also expected to affect the earnings of many companies that derive a significant portion of their revenue from exports to the US.
Sunny Agrawal, head of fundamental research at SBI Securities, told TNIE the market may open flat or slightly lower on Thursday with a negative bias.
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The New Indian Express Vellore
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