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US Hikes Tariffs on Indian Imports, Sending Stocks Lower
7 Aug
Summary
- US imposes additional 25% tariff on Indian imports
- Indian stocks fall after RBI keeps rates unchanged
- Nasdaq rallies, led by gains in Apple, Amazon, Tesla
On August 7th, 2025, the Indian stock market is expected to open lower, following the US President's decision to impose an additional 25% tariff on imports from India. This move brings the combined tariffs to 50%, further escalating the trade tensions between the two countries.
The news comes as Asian markets traded mixed, while the US stock market ended higher, led by a rally in the Nasdaq. On the previous day, the Indian market had closed lower after the Reserve Bank of India's Monetary Policy Committee (MPC) decided to keep the repo rate unchanged and maintain a 'Neutral' policy stance.
Analysts predict that the market will continue to consolidate as investor sentiment remains cautious amid the ongoing India-US trade dispute and the ongoing Q1 earnings announcements. The Sensex fell 166.26 points, or 0.21%, to close at 80,543.99, while the Nifty 50 settled 75.35 points, or 0.31%, lower at 24,574.20.
Despite the overall market decline, the US stock market saw a strong performance, with the Dow Jones Industrial Average gaining 81.38 points, or 0.18%, and the S&P 500 rallying 45.87 points, or 0.73%. The Nasdaq Composite closed 252.87 points, or 1.21%, higher, driven by gains in tech giants like Apple, Amazon, and Tesla.
