US Trade War Fears Wipe Out $180 Billion from Indian Stocks in Two Days
Indian stocks have lost around $180 billion in value over two days after U.S. President Donald Trump threatened to impose new tariffs on countries that tax American goods. According to Reuters, India could be one of the hardest-hit economies due to its high tariffs on U.S. imports.
The Nifty 50 and Sensex, India’s main stock indexes, fell over 2% in two days, while smaller companies saw even steeper drops of 5%. Out of nearly 3,000 stocks listed on India’s National Stock Exchange, 87% declined on Tuesday.
Analysts say India is at high risk because it has some of the highest tariff differences with the U.S. among Asian countries. Morgan Stanley and Citi estimate U.S. tariffs on Indian goods could rise by 4-6 percentage points. Satish Chandra Aluri, an analyst at Lemonn Markets Desk, told Reuters that India is “likely to get hit the most” in Asia.
Since Trump first threatened tariffs in November, India’s Nifty index has dropped 4.7%, worse than China and Canada, which saw smaller declines. Only Mexico’s stock market fell more.
Investors are now looking to Indian Prime Minister Narendra Modi’s meeting with Trump later this week for possible exemptions. Modi is expected to propose cutting tariffs and increasing imports of U.S. energy and defense products to ease tensions.
If the tariffs go ahead, key Indian exports like pharmaceuticals, gems, textiles, and machinery could suffer. On Tuesday, every major sector in India’s stock market fell, with pharma and IT stocks dropping nearly 2%.
The situation highlights how global trade tensions can quickly impact markets, especially in countries like India that rely heavily on exports.
This report is based on information from Reuters, a trusted news source.
https://www.reuters.com/world/india/indian-shares-seen-opening-marginally-higher-2025-02-11