Markets largely unfazed as Trump slaps 50 percent tariff on Indian imports

Trump warned that future actions could raise tariffs on Indian pharmaceutical imports to as high as 250 percent

Indian financial instruments listed in the US showed a mixed but largely measured response after US President Donald Trump signed an executive order raising tariffs on Indian imports from 25 percent to 50 percent. The move, effective August 27, comes amid Washington’s criticism of India’s continued purchases of Russian oil and what it calls “unfair trade practices.”

Trump warned that future actions could raise tariffs on Indian pharmaceutical imports to as high as 250 percent.

The iShares MSCI India ETF (INDA), a key indicator of US investor sentiment toward Indian equities, dropped 1 percent intraday following the announcement. However, it recovered part of the losses and closed just 0.3 percent lower at $52.25.

Indian American Depositary Receipts (ADRs) posted a mixed performance on US exchanges. Infosys declined 0.8 percent to close at $16.07, while Wipro slid 1.68 percent to $2.635. Dr. Reddy’s Laboratories suffered a sharper fall, down 2.5 percent to $13.33. On the other hand, some financial ADRs were resilient—HDFC Bank edged up 0.2 percent to $75.88, and ICICI Bank gained 0.43 percent to $32.97.

Among travel and IT-related ADRs, MakeMyTrip rebounded from a 1.5 percent intraday dip to end 0.26 percent higher at $92.98. WNS Holdings remained virtually flat, closing at $74.85 with a marginal 0.03 percent gain. Sify Technologies recorded a sharp rally of 28.5 percent, ending the session at $8.48. Roadzen rose 1.7 percent to $1.19, and Yatra Online added 0.44 percent to finish at $0.905.

Meanwhile, the GIFT Nifty, which reflects early sentiment in Indian markets, was trading slightly higher at 24,566—up 0.12 percent.

India has condemned the tariff escalation as "unfair, unjustified and unreasonable," stating it will take all necessary steps to protect its national interests. The Indian government termed the US decision "extremely unfortunate" and noted that the executive order does not cover Section 232 items such as steel and aluminium, or Annex II categories including pharmaceuticals and semiconductors.