Trump Tariff News: Indian government carefully examines impact of US reciprocal tariffs

The Indian automobile industry does not expect to have any significant impact from US President Donald Trump’s reciprocal tariff announcement, as autos are not covered in it and exports to the US are limited, industry body SIAM said on Thursday.

Samir Arora, Founder and Fund Manager of Helios Capital, in an interview stated that the ongoing trade conflict is far from settled, with countermeasures from key global players imminent. "Europe has already signaled its intent to retaliate, Canada is set to respond today, and China will likely follow soon," he noted. Speaking on India's position, Arora described 27 percent tariff as neither excessive nor minimal. "It falls within a reasonable range, considering previous estimates were around 11%," he said. He acknowledged that Indian exports to the US are relatively small, yet the tariff will have an impact.

India’s exports to the US, which accounted for a third of the South Asian nation’s total exports in key sectors such as electronics, gems, jewellery, and drugs, may prove resilient despite high US tariffs, according to a Moneycontrol analysis. While tariffs will undoubtedly bite all nations, Indian exporters of electronics and drugs may emerge stronger as rivals China and Vietnam face steeper duties.

The commerce and industry ministry is carefully examining the implications of US President Donald Trump's reciprocal tariffs, which were announced early on April 3, and is engaged with stakeholders, seeking feedback from India Inc and exporters.

It is also studying the opportunities that may arise from the new development in US's trade policy, the ministry said in a statement, hours after Trump announced sweeping tit-for-tat tariffs on goods imported to America by rivals as well as allies.

The Indian stock market indices closed in the red after US President Donald Trump announced sweeping reciprocal tariffs. The Sensex closed 322 points lower at 76,295, while Nifty 50 ended the session at 23,250. Pharma stocks like Sun Pharma, Cipla and others recorded strong gains, as they were excluded from the tariffs. However, IT stocks like Infosys and Tech Mahindra strongly crashed.

UK Prime Minister Keir Starmer told business leaders at his Downing Street office that "clearly there would be an economic impact" of the 10 percent tariff to be imposed on British exports by the United States. "Last night the president of the United States acted for his country, and that is his mandate. Today, I will act in Britain's interests with mine," said Starmer, adding that trade negotiations would continue with Donald Trump's administration and that "we will fight for the best deal for Britain".

Stressing that "nobody wins in a trade war", Starmer vowed to respond with "pragmatism, cool and calm heads". "We have a range of levers at our disposal, and we will continue our work with businesses across the country to understand their assessment of these options," he said.

Axis Securities said the direct impact of US reciprocal tariffs on India remains limited . "With higher tariffs being imposed on competing economies, Indian exports are not at a relative disadvantage. However, in the short term, certain sectors may experience pressure on volumes, margins, and overall growth," it said.

Speaking about how the stock market will react to the tariffs, the brokerage said, "Market volatility is expected to remain elevated in the near term due to the extent of the tariffs, which have surpassed market expectations...Given the significant influence of the US economy on global financial markets, short-term sentiment is likely to be impacted. However, we see this volatility as an opportunity. We recommend increasing cash allocations by up to 10% and using market dips to systematically build positions in high-quality stocks with strong earnings visibility. A phased investment approach with a 12–18 month horizon remains the most prudent strategy in the current environment."

The Indian economy and businesses may be relatively insulated from Trump’s latest tariffs, however, the financial and currency markets may need to navigate volatility in days ahead, Neelkanth Mishra, Chief Economist at Axis Bank said.

"The market should get used to heightened uncertainty," Neelkanth Mishra said during a conversation with CNBC-TV18 on April 3, reacting to the reciprocal tariffs. Mishra warned that any potential retaliation could trigger currency swings and market stress, given that bilateral trade talks between India and America have been underway. (Read more)

Auto component makers have urged a dialogue between the Indian and US governments in the wake of US President Donald Trump's big bang "Liberation Day" announcements of large, reciprocal tariffs. Some Indian component manufacturers have significant exposure to north American markets.

"ACMA (Automotive Components Manufacturers Association) remains hopeful that ongoing negotiations between the Indian and US governments will lead to a balanced resolution that benefits both economies. We believe that the strong trade relationship between India and the United States, especially in the auto components sector, will encourage continued dialogue to mitigate the impacts of these measures," said Shradha Suri Marwah, President, ACMA, and Chairman and Managing Director of Subros, an auto parts maker.

Congress leader Rahul Gandhi on Thursday said that the reciprocal tariffs announced by US President Donald Trump will "completely devastate" India and asked what the central government is doing to counter the impact of the US trade retaliation.

Speaking in Lok Sabha, the leader of opposition asked what the Modi government is doing about "our land and what will you do on the issue of tariffs."

Samajwadi Party MLA Rais Shaikh took to X to react to the US reciprocal tariffs. "Modi Ji once proudly said, 'Trump is my friend.' Now his 'friend' gifts India a 26% tariff blow. Friendship goals? Or foreign policy failures masked with hugs and photo-ops?" he said.

Shiv Sena (UBT) leader Aaditya Thackeray slammed the BJP government for maintaining a silence on the reciprocal tariffs. “Most countries are debating their way forward with the kind of impact it will have on their economy and country. Our country’s union government has kept everyone busy on another issue altogether. Seems like the coping mechanism of the bjp’s government is controversy and dividing the country,” he said in a post on X.

Thackeray further wrote, "Shouldn't the Finance Minister be making a detailed statement in the Parliament on Reciprocal Tariffs- the impact and reaction? Hold a discussion. Seek the support of all sides of the Parliament! This is a national challenge very badly managed by the BJP’s government."

US President Donald Trump held a chart on Wednesday, showing how much tariffs will be imposed on several nations. The chart however didn't mention Russia, leading to speculations on social media. A White House official has allegedly told US-based publication NOTUS that Russia and US have zero trade between them, due to the sanctions imposed over the war in Ukraine. Hence, the Vladimir Putin-led country was not mentioned on the list.

Nilesh Shah, MD of Kotak Mahindra AMC, said the recent tariffs announced by US President Donald Trump would negatively impact the US economy.

"President Trump is proving what Sant Tulsidas wrote centuries ago, 'Samrath ko nahi dosh gosain'," Shah quipped. "WTO is meant for weak nations. Strong nations can do what they want. They can even calculate tariffs as a deficit with the USA divided by exports to the USA and get away with it. We will soon see a case study to justify this novel definition," he said.

"The US has imposed mass tariffs like this twice in history: in 1828 and 1930, with a gap of approximately 100 years. Both those resulted in the recession/Great Depression. There is a high chance that the 2025 mass tariff hike will result in lower growth and higher inflation. If US markets are correcting, US consumption, which accounts for two-thirds of the economy, could come under pressure due to higher inflation and the evaporating wealth effect. For emerging markets, it will be called stagflation, but for the US, it will be called a hard landing," he said.

"India has been hit lower than most of its peers. It is up to us how we manage the situation. We can bring footwear and garments business from Asian peers if we get our act together. We have to be proactive about Chinese dumping. We should negotiate hard with China to create a win-win situation rather than the usual lose-lose situation," Shah further said.

"Most importantly we need to remember that 'Picture Abhi Baki hai'," he quipped.

MoS Finance Pankaj Chaudhary has reacted to US President Donald Trump’s reciprocal tariffs. "We are assessing the impact of reciprocal tariffs imposed by US," he said at an event. "For Trump, it's America first but for Modi, it's India first," he added.

“(Trump) has preserved a number of important elements of our relationship, the commercial relationship between Canada and the United States. But the fentanyl tariffs still remain in place, as do the tariffs for steel and aluminum. We are going to fight these tariffs with countermeasures, we are going to protect our workers, and we are going to build the strongest economy in the G7,” said Canadian PM Mark Carney.

"Japan is a country that is making the largest amount of investment to the United States, so we wonder if it makes sense for (Washington) to apply uniform tariffs to all countries. We need to consider what's best for Japan's national interest. We're putting all options on the table in considering the most effective response,” said Japan’s Prime Minister Shigeru Ishiba.

European Commission President Ursula von der Leyen said the European Union was prepared to respond with countermeasures to US tariffs if negotiations failed. “We are already finalising the first package of countermeasures in response to tariffs on steel,” she said.

Indian benchmark stock market indices Sensex and Nifty tumbled in the morning, after US President Donald Trump announced a bigger-than-expected wall of tariffs around the world's largest economy.

• Indian shares are set to open lower on Thursday after U.S. President Donald Trump imposed a 27% reciprocal tariff on imports from the South Asian nation.
• The GIFT Nifty futures were trading at 23,069.5 as of 6:46 a.m. IST, indicating that the blue-chip Nifty 50 will open below Wednesday's close of 23,332.35.
• Trump's tariff announcement on India on Wednesday was part of his plan to impose a 10% baseline tariff on all trade partners, with higher duties on dozens of other countries, including 34% on China. (Reuters)

China on Thursday urged the United States to immediately cancel its latest tariffs and vowed countermeasures to safeguard its own interests, after President Donald Trump declared sweeping levies on all U.S. trading partners around the world. (Read More)

As the world economy grapples with the impact of reciprocal tariffs announced by US President Donald Trump, the White House issued a list of commodities that have been spared, for now. The list spells good news for India as pharmaceutical sector has ‘temporarily’ dodged the levies. At present, India charges 10 percent tariff on American pharma imports. (Read More)

Domestic pharmaceutical players might heave a sigh of relief in trade on April 3, while the other sectors see intense selling pressure, as the White House has excluded pharmaceuticals products from the reciprocal tariffs announced by U.S. President Donald Trump. (Read More)

Donald Trump’s “Liberation Day” package of tariffs is being interpreted in India in three different ways. The immediate reaction is relief mixed with schadenfreude: At 26%, the tax on India is not the slap on the wrist that diplomats in New Delhi would have hoped for, especially after making concessions to Elon Musk’s Tesla Inc., and Starlink Inc., as well as to Alphabet Inc. and Meta Platforms Inc. But it’s at least less severe than China’s 34% and Vietnam’s 46%. (Read More)

In its first response on Trump tariffs, Chinese state agency Xinhua called it a 'self-defeating bullying.' "By turning trade into an oversimplistic tit-for-tat game, Washington is dismantling a global trade system based on efficiency, specialization and mutual benefit and hurting both the U.S. economy and the global economy at large," the commentary read. It should be noted that the Beijing has not issued any official statement so far.

US President Donald Trump announced sweeping universal tariffs in what’s seen as watershed moment in the world economy. In a grand ceremony with his full cabinet in attendance, Trump spoke for around 50 minutes. While announcing the most aggressive reciprocal tariff policy, Trump said that it will usher in a ‘golden age’ for America. India was among 50 nations that were hit by the tit-for-tat levies. (Read More)

• Stocks dived, bonds surged, the dollar rose and Asia's markets were set to slide on Thursday as U.S. President Donald Trump announced a bigger-than-expected wall of tariffs around the world's largest economy, upending trade and supply chains.
• Nasdaq futures tumbled 4%, with tech on the front line because China - hit with a 34% levy on top of a previous 20% tariff - is such a significant manufacturing hub. Apple shares were down nearly 7% in after-hours trade. - Reuters

Brazil's Congress on Wednesday approved a law allowing the executive to respond to trade barriers, after US President Donald Trump announced a 10 percent tariff on exports from Latin America's biggest economy. - AFP

Less than 0.1 percent of exports from India, China and Vietnam faced over 25 percent tariffs in 2023, but the situation is expected to soon change as the US president on April 3, unveiled his plan to impose kind or discounted reciprocal tariffs, according to a Moneycontrol analysis of UN trade data. (Read More)

• India's apex exporters' body, FIEO, stated on Thursday that the 26 per cent tariffs or import duties announced by US President Donald Trump on India will undoubtedly affect domestic players.
• However, India is much better placed than many other countries, said Ajay Sahai, Director General and CEO of the Federation of Indian Export Organisations (FIEO). - PTI

• The Swiss government on Wednesday underlined the importance of respecting international law after U.S. President Donald Trump put higher tariffs on the export-oriented Alpine country than the European Union in a major trade policy announcement.
• Trump presented figures saying the United States would apply a 31% tariff on imports from Switzerland compared with 20% on goods from the European Union and 10% from Britain. (Reuters)

China: 34%

European Union: 20%

South Korea: 25%

India: 26%

Vietnam: 46%

Taiwan: 32%

Japan: 24%

Thailand: 36%

Switzerland: 31%

Indonesia: 32%

Malaysia: 24%

Cambodia: 49%

United Kingdom: 10%

South Africa: 30%

Brazil: 10%

Bangladesh: 37%

Singapore: 10%

Israel: 17%

Philippines: 17%

Chile: 10%

Australia: 10%

Pakistan: 29%

Turkey: 10%

Sri Lanka: 44%

Colombia: 10%

President Donald Trump announced plans for sweeping tariffs Wednesday, saying “our country has been looted, pillaged, raped, plundered” by other nations.

The aggressive rhetoric came as Trump showed a willingness to dismantle a global economic system that the United States helped to build after World War II. Trump held up a chart while speaking, showing the United States would charge a 34 per cent tax on imports from China, a 20 per cent tax on imports from the European Union, 25% on South Korea, 24 per cent on Japan and 32 per cent on Taiwan.

“Taxpayers have been ripped off for more than 50 years,” Trump said in remarks at the White House. “But it is not going to happen anymore.” The president has promised that factory jobs will return back to the United States as a result of the taxes, but his policies risk causing a sudden economic slowdown as consumers and businesses could face sharp price hikes on autos, clothes and other goods.

President Donald Trump claimed that with the latest tariffs, his administration is defending the US farmers and ranchers.

“With today’s actions, we’re also standing up for our great farmers and ranchers who are brutalized by nations all over the world,” Trump said.

The president specifically criticized the tariffs Canada has imposed on US dairy products.

“It’s not fair to our farmers. It’s not fair to our country,” he said, claiming that US provides large subsidies to countries like Canada and Mexico to “keep them in business.”

US President Trump on Wednesday announced a 25% tariff on vehicles not assembled in the US, effective April 3. This new tariff will apply to all cars made outside the U.S., including those built in Canada and Mexico, likely leading to significant price increases.

Even foreign-made components used in vehicles assembled domestically will be subject to these tariffs, complicating the supply chain for many automakers. While some brands will experience minimal effects, others will be heavily impacted. Read more

Trump: We should have 6 trillion dollars in investment, and it could be higher by the end of the year. They were wrong about NAFTA, they were wrong about China, they were wrong about the Trans Pacific agreement. China was taking tremendous advantage of us.

Trump: We have seen companies coming into US like never before. Many will call for exemption from tariff, they will have to drop tariffs

Trump: Foreign nations will be asked to pay for the privilege of accessing US market. If you want tariff rate to be zero, build your product in America

Trump: India very, very tough. PM is a great friend of mine but he hasn't been treating us right

As per US government calculation, India charges US 52 percent, therefore US will reciprocate with 26 percent tariffs.

We will calculate combined rates of all tariffs, including non-tariff barriers, and charge them approximately half of what they have been charging us. We will charge them around half of what they are charging us on tariffs: Trump

We will calculate combined rates of all tariffs, including non-tariff barriers, and charge them approximately half of what they have been charging us: Trump

The US cannot produce enough antibiotics, we used to dominate in consumer electronics. A single shipyard in China produces more ships than all shipyards of the US combined: Trump.

We have lost 90,000 factories and 5 million jobs since NAFTA. Biden administration in it's last year lost 100,000 manufacturing jobs: Trump

United States cannot continue with the policy of unilateral economic surrender. We have to take care of our people. We are putting America first: Trump.

We have subsidised for a lot of countries and kept them in business such as Mexico. EU, Australia bans American poultry and beef respectively through non-tariff barriers. China charges 65% on rice imports, Japan charges 700% on rice imports from the US: Trump

Canada imposes 200-300 per cent tariff on our dairy products - Trump

US charges 2.5% on foreign made automobiles, India charges 70%, Japan and S Korea impose non-monetary barriers: Trump

Trump: Other nations have become rich and prosperous at our expense and now it is our turn to prosper.  Other nations have created outrageous non-monetary barriers. They manipulated their currencies, subsidized their exports, stole our intellectual property

"American steel, auto workers and farmers have suffered gravely as foreign leaders have stolen our jobs and ransacked our factories. We do it to them, what they do to us. It is our declaration of economic independence," Trump

"We will begin to make america wealthy again. We had an american dream that we don’t hear too much about. We have been ripped off for more than 50 years," Donald Trump

House Minority Leader Hakeem Jeffries told reporters that President Donald Trump’s plan to impose sweeping tariffs on America’s trading partners would trigger a recession.

“Trump tariffs are going to make things more costly in the United States,” he said today at a news conference.

“Republicans are crashing the American economy in real time and driving us to a recession,” Jeffries said. “This is not Liberation Day, it’s Recession Day.

The co-founder of an Ottawa-based brewery told CNN that new tariffs from the White House could rapidly increase the costs of brewing beer and ultimately drive down demand for it.

Josh McJannett, co-founder of Dominion City Brewing Co. said independent brewers on both sides of the border will be spending more “for absolutely no reason.”

Taylor Bachrach, a member of Canada’s parliament, said the country is united in its commitment to defend industries like softwood lumber, which heavily relies on exports to the US. Speaking from British Columbia, Bachrach acknowledged growing concerns among workers about the economic fallout of Trump’s tariff policies, reported CNN.

According to reports from broadcaster CBS News, rank-and-file steelworkers and auto workers have been invited to witness the moment firsthand.

Alongside them will be Vice President JD Vance, a majority of Trump’s cabinet and key congressional leaders, including House Speaker Mike Johnson and House Majority Leader Steve Scalise.

The presence of blue-collar workers shows Trump’s push to frame tariffs as a win for American industry.

India has often been targeted by US President Donald Trump for steeper tariffs, raising concerns over the impact of America’s reciprocal plan on Indian trade and commerce, which is set be unveiled in a few hours.

Even as Trump repeatedly termed India as a “tariff abuser”, especially on farm and automobiles, New Delhi has been betting on the ongoing talks for a trade deal with US to ensure a softer stance for the country when it comes to America’s Fair and Reciprocal Plan.

Trump is set to announce a new set of tariffs on April 2, 4 pm Eastern Time in the United States, which is 1.30 am on April 3 for India.

SAIL Chairman Amarendu Prakash said on Wednesday said that the imposition of higher tariffs by the US may change the global "trade flows", increasing the chances of India becoming more vulnerable to steel imports.

The Donald Trump administration has proposed a 25 per cent tariffs on all steel and aluminium imports into the US and also announced imposing reciprocal tariffs on all its trading partners including India with effect from April 2.

"That will mean Asian countries -- China, South Korea, Japan -- that are exporting to Europe, that steel becomes free and will be floating around in the world. This floating trade might come to India," he said.

US President Donald Trump has introduced the term “Liberation Day” to describe the roll out of his reciprocal tariffs on April 2, which he claims will stop America being "ripped off" and will deliver a new "golden age" of US industry.

Early Wednesday, Trump posted a one-liner on his Truth Social platform: "It's Liberation Day in America!" Soon after, top leaders from his administration shared similar posts. Read more

The imposition of reciprocal tariffs by the United States from April 2 is likely to emerge as a critical concern for Indian exporters, adding uncertainty to trade relations between the two nations. As discussions over a potential bilateral trade agreement progress, former Chairman of the Central Board of Indirect Taxes and Customs (CBIC) Vivek Johri says that there is a need for a balanced outcome that safeguards India’s key interests while ensuring market access for Indian goods in the US.

Reciprocal tariffs appear to be a starting point, pushing India and the US toward deeper trade negotiations. “If the two countries are able to conclude a trade deal that the US sees as beneficial to its interests, reciprocal tariffs may even be withdrawn,” the former CBIC chairman and senior advisor at KPMG told Moneycontrol. Read more

The government has set up a control room to monitor the announcements by US President Donald Trump regarding reciprocal tariffs against key trading partners including India, news agency PTI reported citing sources.

Senior officials from ministries including commerce and industry will be present in the control room for close watch of the announcements, they said.

US President Donald Trump has said the tariff announcements, scheduled for early morning Thursday (India time), will turn out to be a 'Liberation Day' for the US.

Indian markets remain on the edge ahead of Donald Trump’s tariff bombshell, that may rattle the key sectors, such as pharmaceuticals, apparel, electronics, agriculture and machinery. Despite US being a significant trading partner of India, Trump has termed the latter as a “tariff king” and “tariff abuser”.

Recently, the White House said India imposes a 100 per cent tariff on American agricultural products. It said the high tariffs imposed by other countries made it "virtually impossible” for US products to be imported into those nations. It also criticized New Delhi's trade policies, such as the "Make in India" initiative, agricultural tariffs, and limitations on dairy imports. Read more

US President Donald Trump’s “Liberation Day” reciprocal tariffs are feared to spark a global trade war, provoking a chain reaction of retaliation by major trading partners. The countries most likely in the crosshairs have called for talks -- even as they ready retaliatory measures.

Amid uncertainty over tariffs, China said that the US should “return to the right track of dialogue and cooperation at an early date but if war is what the US wants, be it a tariff war, a trade war or any other type of war, we’re ready to fight till the end.” Read more

India has often been targeted by US President Donald Trump for steeper tariffs, raising concerns over the impact of America’s reciprocal plan on Indian trade and commerce, which is set be unveiled in a few hours.

Even as Trump repeatedly termed India as a “tariff abuser”, especially on farm and automobiles, New Delhi has been betting on the ongoing talks for a trade deal with US to ensure a softer stance for the country when it comes to America’s Fair and Reciprocal Plan.

Trump is set to announce a new set of tariffs on April 2, 4 pm Eastern Time in the United States, which is 1.30 am on April 3 for India. Read  more

Keeping world economies on the edge on what is feared to spark a global trade war, Donald Trump is set to announce his “Liberation Day” tariffs. The US President says reciprocal action is needed because the world's biggest economy has been "ripped off by every country in the world.”

Trump is poised to unveil the sweeping measures in the Rose Garden of the White House at 4:00 pm (2000 GMT), which is 1:30 am as per India time, on Wednesday. Read more

Goods from sectors, including agriculture, precious stones, chemicals, pharma, medical devices, electricals, and machinery, may get impacted if the US goes ahead with imposing reciprocal tariffs on Indian products, according to experts.

They said these sectors could face additional customs duties from the Trump administration because of the high tariff differential or gap, which is the difference between the import duties imposed by the US and India on a product.

At the broad sector level, the potential tariff gaps between India and the US vary across sectors.

Federation of Indian Export Organisations President SC Ralhan on Wednesday said that the Indian exporting community is "very" concerned about the possible reciprocal tariffs of the US as it could severely hurt MSME shipments to America in the short run. He suggested that the government should come forward and support exporters to deal with these tariffs.

"Reciprocal tariffs in the range of 10 per cent are manageable but beyond that will have serious implications on Indian exporting community, particularly MSMEs. The duties will have a short-term impact on India's exports to the US as both the countries are negotiating a bilateral trade agreement," Ralhan said.

US markets opened lower for a third-straight session on Wednesday, April 4. This comes amidst investor anxiety on President Donald Trump’s announcements on reciprocal tariffs today. At open, the S&P 500 fell 1 percent, the Nasdaq Composite fell 1.4 percent. The Dow Jones Industrial Average also fell 0.7 percent.

The White House has announced that US President Donald Trump will announce his reciprocal tariffs during an event in the White House Rose Garden. “The president will be announcing a tariff plan that will roll back the unfair trade practices that have been ripping off our country for decades,” White House Press Secretary Karoline Leavitt said according to a report by Bloomberg.

India plans to lower import tariffs on electric cars, rejecting requests from domestic automakers to delay such cuts by four years, as New Delhi prioritises closing a trade deal with the United States, government and industry sources told Reuters.

The automakers are lobbying Prime Minister Narendra Modi's government to delay any cut in EV tariffs until 2029, and then phase in a reduction to 30% from as high as roughly 100%, two industry sources and one government official said. Read more

"It's Liberation Day in America," wrote US President Donald Trump on his Truth Social platform today, with an all-caps proclamation. He is set to roll out the measures flanked by cabinet members in the Rose Garden of the White House at 4:00 pm (2000 GMT) -- after Wall Street markets close -- promising that they will stop America being "ripped off" and will deliver a new "golden age" of US industry. Read more

India plans to lower import tariffs on electric cars, rejecting requests from local automakers to delay such cuts by four years, as New Delhi prioritizes closing a trade deal with the United States, government and industry sources told Reuters.

Donald Trump’s tariff bombshell may rattle the following sectors the most:

• Textiles and apparel
• Pharmaceuticals
• Agriculture and seafood
• Liquor, meat and sugar
• Footwear

(Read more)

Stock futures on the Wall Street tumbled, as investors remained worried ahead of US President Donald Trump’s announcement on reciprocal tariffs. Dow Jones Futures were down nearly 200 points, while S&P 500 Futures dropped 0.60 percent. Nasdaq 100 Futures decline nearly 155 points.

European stocks tumbled as investors remained on the edge ahead of US President Donald Trump’s announcement on reciprocal tariffs. The pan-Europe STOXX 600 index was down nearly 1 percent, while Germany's trade-sensitive dropped over 1.57 percent.

US President Donald Trump took to his social media platform Truth Social to write, “IT’S LIBERATION DAY IN AMERICA!” This comes ahead of his announcement on reciprocal tariffs.

Israel has cancelled import duties on all American goods, ahead of US President Donald Trump's announcement of reciprocal tariffs today. The order was issued by Finance Minister Bezalel Smotrich and Economy and Industry Minister Nir Barkat, under the directive of Israeli PM Benjamin Netanyahu.

"Today we cancelled all of the customs duties levied on products from the US, Israel's largest trading partner. Cancelling the customs duties on American goods is an additional step in the policy that my governments have led for a decade in opening up the market to competition, introducing variety to the economy and lowering the cost of living," Netanyahu wrote in an X post.

Quant Mutual Fund said that US stocks are now at risk, with Trump's tariff threatening to hurt global trade, which may undermine America’s supremacy in the world order.

US President Trump’s trade tariff plan positions him as a potential winner in the ‘Grand Master Geopolitical Chess Tournament’, said the newsletter, however, the policies could ultimately weaken America's superpower status.

International gold prices have been at all-time highs and are likely to remain firm in April, said Quant. While the fund house maintains a near-term cautious outlook on the precious metal, it sees the rally extending further before a sharp correction by Q2CY25. The AMC said it is tilting towards large and mega largecap stocks, while selectively increasing exposure to smallcap names. (Read more)

Kashyap Javeri of Emkay Investment Managers sees tariff concerns as less severe than feared. "The tariffs will likely be implemented, but they'll be more measured than most anticipate," he says. Javeri believes auto ancillaries and pharma CDMOs (Contract Development and Manufacturing Organizations) are well-placed to withstand trade pressures.

Pointing to the inelastic nature of supply chains, particularly in auto ancillaries, Javeri argues that high tariffs won't significantly impact Indian players. "US manufacturing just can’t compete with India," he notes, highlighting OEM-specific production that limits supplier substitution. (Read more)

As the world prepares for the fallout of reciprocal tariffs that US President Donald Trump will announce today, experts are in unison over one thing – it will be a very, very costly affair for Americans. Economists have sounded alarm over the impact of the tit-for-tat levies. The tariffs may push the US economy in recession, many analyses have shown. While there is no clarity on what the rate of the tariffs will be, there is a clarity on what may get costlier for Americans. Here are six major commodities that will see higher costs as and when the Trump tariffs kick in. (Read More)

• Vietnam's Deputy Prime Minister Ho Duc Phoc and executives from companies including Vietnam Airlines JSC and Vietjet Aviation JSC will visit the United States this weekend as U.S. tariffs loom, Bloomberg News reported on Wednesday.
• The two airline officials are expected to meet those from Boeing and some U.S. banks, the report said, citing sources and an agenda, while Phoc is set to visit Washington.
• Trump is expected to announce sweeping new reciprocal tariffs on global trading partners on Wednesday. (Reuters)

• Europe will react to the anticipated tariffs from US President Donald Trump in a measured way, ensuring a balanced response while avoiding any escalation of tensions, French Industry Minister Marc Ferracci stated on Wednesday.
• "Europe has consistently prioritized negotiation and de-escalation, as trade wars, as we all know, ultimately harm everyone involved," Ferracci remarked on RMC radio.
• President Trump is set to unveil broad new reciprocal tariffs on global trade partners on Wednesday, sparking concerns over rising prices and the potential for retaliatory measures from other nations.

• In just 10 weeks in office, Donald Trump has imposed his will on perceived adversaries in business, politics, the media and allied nations by leveraging power in ways no other modern U.S. president has tried.
• His administration has sought the arrest and deportation of student protesters, withheld federal funds from colleges, ostracized law firms tied to his political opponents, threatened judges and tried to pressure journalists. At the same time Trump has downsized the federal government dramatically and purged it of workers who could stand in his way.
• Central to this effort has been Trump's use of policy-making executive orders to target opponents as never before. He has been unafraid to employ lawsuits, public threats and the power of the federal purse to bring institutions to heel.
• “What unites all these efforts is Trump's desire to shut down every potential source of resistance to the MAGA agenda and to his personal power,” said Peter Shane, a law professor at New York University.
• Some targets have rushed to placate the president, a few have fought back and many are still trying to figure out how to respond. Many of Trump's actions are being challenged in courts, where some judges have tried to slow him down.
• The stunning speed and breadth of the Republican president’s actions have caught Democrats, public-service unions, CEOs and the legal profession off guard.
• Trump's supporters say he is simply using the full reach of his presidency to achieve the goals he set as a candidate.  (Reuters)

The Indian rupee opened 22 paise lower on April 2, ahead of US President Donald Trump's trade tariff announcement.

The local currency opened at 85.68 against the US dollar and then traded at 85.72 against the US dollar, as compared to 85.46 against the greenback.

• old prices extended their gains on Wednesday, following a record high in the previous session, as investors sought the comfort of the safe-haven metal in anticipation of the potential impact of U.S. reciprocal tariffs.
• Spot gold was up 0.7% at $3,131.25 an ounce, as of 0240 GMT. Bullion touched an all-time high of $3,148.88 on Tuesday.
• U.S. gold futures rose 0.4% to $3,159.90.
• "The main reason for these successive record highs has been safe-haven buying, and the geo-political uncertainty underpinning this shows no sign of letting up," said Philip Newman, managing director of Metals Focus.
• A U.S. economic slowdown, potential rise in inflation, and interest rate cuts could set the stage for gold to reach $3,300 in the coming months, Newman said. (Reuters)

Veteran investor Prashant Jain had an exclusive interview with N Mahalakshmi on The Wealth Formula, where he talked about overvaluation in the stock market, mutual fund sentiments and what he thinks about the consumption theme. Edited excepts (Read Full Interview)

The clock is ticking for the big bang reciprocal tariffs announcement by US President Donald Trump. Even as the details remain sketchy, latest reports say that the US President will unveil the new round of tit-for-tat levies at a ceremony in White House Rose Garden around 1:30 am (IST). While there is a lot of trepidation among the investors and major economic blocs over the scale of the tariffs, one thing is clear that Trump will not back down, for now. The White House in its latest communication said that the tariffs will come into effect ‘immediately.’ So, will there be no scope for negotiations? Is there a ‘Plan B’? What’s happening in India, which is part of the list of nations likely to be impacted by the reciprocal duties. As new chapter of Trump’s trade war goes down the wire, here are three major things that we still don’t know about this major economic development. (Read More)

• The Indian rupee is expected to react to the U.S. announcement of reciprocal tariffs this week, as investors assess how the levies may affect global trade and growth prospects. Meanwhile, government bond yields are anticipated to decline.
• The rupee ended at 85.47 against the U.S. dollar on Friday, appreciating by 2.3% in March, driven by a surge in dollar inflows due to seasonal corporate activity and foreign portfolio investment.
• Despite outperforming its regional counterparts last month and posting its strongest monthly gain in over six years, the rupee could face challenges this week.

• The dollar firmed a touch and other currencies held tight ranges on Wednesday as traders anxiously awaited details of U.S. President Donald Trump's tariff plans later in the day that could set the tone for markets in the near term.
• The euro last bought $1.0792 while sterling steadied at $1.2924, both little changed ahead of a White House Rose Garden announcement scheduled for 2000 GMT that will likely see the imposition of dramatic new duties that could upend the global trade system. (Reuters)

• Australian Prime Minister Anthony Albanese and his May election opponent, Liberal Party leader Peter Dutton, both pledged to defend the country’s national interests amid the threat of US tariffs that could affect Australian beef, a Reuters report said.
• Australia maintains a trade surplus with the United States and has a free trade agreement that allows US exports to enter duty-free. Albanese has stated that his government will not respond to the Trump administration’s tariffs with retaliatory measures.
• Toughening his stance during the election campaign, Albanese emphasized on Wednesday that he would "stand up for Australian interests" and would not back down on regulations that the US is likely to target.

• The Trump administration has begun dismissing staff at key U.S. health agencies, including the CDC and FDA, as part of a broader plan to eliminate 10,000 government health jobs, according to Reuters, citing sources and a health official.
• Health Secretary Robert F. Kennedy Jr. has called the cuts at the Centers for Disease Control and Prevention and the Food and Drug Administration necessary to streamline what he sees as an inefficient bureaucracy. (Read More)

The White House asserts that Trump’s tax cuts and deregulation plans will help reduce inflation, potentially offsetting the impact of the tariffs. However, economists have expressed skepticism about this claim. In a recent note, analysts at Goldman Sachs stated that economic growth fueled by Trump’s fiscal policies would not be sufficient to counterbalance the damage caused by his extensive tariff plan.

President Donald Trump’s deliberations over his plans to impose reciprocal tariffs are coming down to the wire, with his team said to be still finalising the size and scope of the new levies he is slated to unveil on Wednesday afternoon. In meetings on Tuesday, Trump’s team continued to hash out their options ahead of a Rose Garden event scheduled to begin as US markets close at 4 p.m. on Wednesday, people familiar with the ongoing discussions said. The White House has not reached a firm decision on their tariff plan, a Bloomberg report said. (Read More)

The White House has dismissed concerns about short-term market and economic instability, arguing that Trump's efforts will yield long-term benefits. "The president will unveil a tariff plan aimed at reversing the unfair trade practices that have been exploiting our country for decades. He is doing this in the best interest of the American worker," White House Press Secretary Karoline Leavitt told reporters on Monday.

The market continued its decline for another session, with the Nifty 50 dropping 1.5% on April 1 as caution mounted ahead of Donald Trump’s tariff announcements. The chart pattern indicates potential further weakness; however, as long as the index holds the 23,100-23,000 range (which aligns with the 50-day EMA and the upper boundary of the bullish gap from March 20), consolidation may persist, with resistance at 23,800. Experts suggest that a decisive breakout either below 23,000 or above 23,800 could set the direction for the index. (Read More)

A Russian official is expected to visit Washington, D.C., this week for talks with the Trump administration, CNN reported on Tuesday, citing a U.S. official and two sources familiar with the plans. The official, Kirill Dmitriev, will meet with Steve Witkoff, a Trump administration official, for talks about strengthening relations between the two countries as they seek to end the war in Ukraine, according to CNN. Dmitriev, the chief of Russia's sovereign wealth fund, was appointed last month as Russia's special envoy on international economic and investment cooperation. (Reuters)

• In anticipation of Liberation Day, US stocks have fallen significantly as investors try to make sense of the chaotic introduction of the trade strategy.
• A CNN report says that Anthony Saglimbene, chief market strategist at Ameriprise, mentioned in a report on Monday that "uncertainty surrounding tariffs has unexpectedly constrained the markets."
• There is mounting concern on Wall Street that Trump’s trade plan could undermine the U.S. economy, possibly halting the economic recovery that began in 2020 after the Covid-19 pandemic downturn.

Since assuming office in January, Trump has raised tariffs on China by 20%, enforced selective 25% tariffs on Canada and Mexico, and hiked steel and aluminum tariffs to 25%.

• This wave of tariffs would be nearly ten times broader than those implemented during Trump’s first term, echoing the protectionist policies of President William McKinley, who hiked import taxes to around 50% in the 1890s.
• Moreover, these tariffs would come on top of the aggressive trade measures Trump has already enacted during his current term.

Throughout his first four years in office, Trump imposed tariffs on approximately $380 billion in imported goods, according to the Tax Foundation.

Trump’s Liberation Day announcement could take multiple directions. One potential scenario involves imposing reciprocal tariffs on the so-called "Dirty 15"—the top 15% of nations with the largest trade imbalances with the U.S. This strategy, put forward by Treasury Secretary Scott Bessent, would dramatically intensify the ongoing trade war.

A simulation by Moody’s revealed that an intensified trade war could eliminate 5.5 million jobs, push the unemployment rate to 7%, and shrink US GDP by 1.7% from peak to trough.