Mon Feb 03 16:20:00 IST 2025: **Global Markets Plunge After Trump Imposes Tariffs**

**Mumbai, India – February 3, 2025** – Global markets experienced significant losses on Monday following US President Donald Trump’s announcement of new tariffs on imports from Canada, Mexico, and China. The 25% tariff on goods from Canada and Mexico, and a 10% tariff on Chinese imports, sparked investor jitters worldwide, leading to sharp declines in Asian and Indian stock markets.

The S&P BSE SENSEX in India fell 0.84%, dropping 653.34 points to 76,842.82, while the NSE NIFTY50 index declined 0.94%, losing 220.40 points to close at 23,261.75. This downturn follows similar trends in Asian markets, with Japan’s Nikkei 225 losing 2.4%, Australia’s S&P/ASX 200 down 1.8%, South Korea’s Kospi falling 2.9%, and Hong Kong’s Hang Seng dipping 1.4%.

Investor caution was further amplified by the upcoming Reserve Bank of India’s monetary policy announcement. The Indian Rupee also depreciated by 67 paise against the US dollar, reaching a record low of 87.29, fueled by fears of a potential trade war. The dollar index rose 1.3% to 109.77.

The new tariffs announced on Saturday triggered immediate retaliatory measures. Canada and Mexico announced their own tariffs on American goods, while China stated its intention to challenge the tariffs at the World Trade Organization and implement countermeasures. The commodity market also experienced volatility as a result.

The timing of the tariff announcement, coinciding with the release of India’s Union Budget 2025, added to the uncertainty. While the budget showed a marginal increase in capital expenditure, allocating ₹11.21 lakh crore for FY2026, the unchanged railway sector funding led to a decline in shares of state-run railway firms. This contributed to the overall negative sentiment in the market. The uncertainty surrounding the global trade situation and the impact of the tariffs on various sectors caused a significant downturn in investor confidence, creating a volatile start to the trading week.

Read More