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

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.