Where can investors find lasting protection?

Trump paused tariffs for 90 days on most nations, except China, but anxiety lingers

- Mayur Bhalerao

MUMBAI: Asia's financial markets were rattled earlier this month after the US announced sweeping tariffs, imposing a blanket 10% duty on all imports and targeting key economies like India, China, Vietnam, Taiwan, and Thailand with steeper levies. China retaliated swiftly, slapping duties as high as 125% on US goods, escalating tensions into a full-blown trade war.

In India, the Nifty 50 plunged over 5% in four days post tariff announcement, while the India Volatility Index (VIX) shot up 65.7% to 22.8 on 7 April—its sharpest single-day spike since 2007. Though US President Donald Trump partially rolled back tariffs on 9 April, offering a 90-day pause for most nations (excluding China), anxiety lingers.

While markets initially rejoiced at this move, fueling a rebound in the blue-chip index Nifty 50, uncertainties linger. US recession anxieties cast a long shadow, and the eventual expiry of tariff reprieve poses a looming threat to exposed businesses. In this precarious landscape, where can investors find genuine safety?

Market experts shared their insights with Mint to identify sectors and stocks expected to weather potential trade-induced slowdowns or a full-blown recession, offering a refuge for investors.