Trump rattles markets again with new levies

US President Donald Trump formally imposed a 25% tariff on Indian exports late on Thursday in a sweeping executive order that hit dozens of trading partners with new levies, escalating his global trade war as the Friday deadline approached.

- Shashank Mattoo

The Republican pressed ahead with a trade policy that initially sparked market selloffs when announced in April. On Friday, global shares stumbled, with Europe’s STOXX 600 down 1.8% and Wall Street opening sharply lower. Indian equity benchmark indices Sensex and Nifty fell 0.72% and 0.82% respectively.

Goods from India face the 25% levy plus an unspecified penalty for Russian oil purchases after talks bogged down over access to India’s agriculture and other sensitive sectors, with New Delhi refusing to open its labour-intensive farms to unfettered American imports.

Trump's executive order also set punitive rates for 69 trading partners, including 35% duties on Canada, 50% for Brazil, 20% for Taiwan and 39% for Switzerland, as a previously announced 12.0lam EDT August 1 deadline approached.

Goods from unlisted countries face a 10% baseline tax. The new levies come into effect on August 7.

India now faces higher tariff rates than regional competitors, with Thailand, Indonesia and Malaysia set for 19% duties while Bangladesh, Vietnam and Taiwan face 20% rates-potentially weakening India's posi tion as a preferred sourcing destination for US companies.