Today, we’re breaking down a recent geopolitical twist that has shaken markets and caught investors off guard. From Trump’s bold statements to a steep new tariff on Indian imports, this is a story where politics, trade, and market sentiment are all colliding—and the impact is already being felt.
Why miss out when it’s FREE? Subscribe now for daily financial insights — and stay ahead of the game! Already subscribed? Let’s get started.
The Talk
In the era of continuous geopolitical developments, you noticed
something which affect your face expression while seeing portfolio green to red.
Smart people are blaming to economic uncertainty of global trade because US
president Donald Trump has already imposed tariff of 25% on Indian imports. They
are actually right as well because investors have showed their uncertainty by wiped
out money from the Indian market. So, what was gone wrong and what can be
consequences. Let s breakdown story further.
Trump on Wednesday, signed an executive order imposing an additional
“Penalty” tariff of 25% on all Indian Imports, on top of the 25% duty already
in Place, citing India’s continued purchase of Russian oil. The White House
argued that these imports pose an “unusual and extraordinary threat” to US
national security and foreign policy. Chasing this move, the total tariff on
Indian imports will increase to 50%. The first slot of tariff took effect on
August 7, and the second slot will begin 21 days later on August 27.
On 31st July, Donald Trump’s tweet has stirred
quite a storm. In it, he called both India and Russia “dead economies” and said
he doesn’t care what the two countries do together. He accused India of having
some of the highest tariffs in the world and claimed the U.S. has done very little
trade with it. Trump also pointed out that the U.S. and Russia barely do
business and suggested it should stay that way. What grabbed the most
attention, though, was his threat to hit India with a 25% penalty tariff for
buying oil from Russia—a move that has created fresh uncertainty in the
markets. Many see his remarks as ignoring the fact that India is currently the
fastest-growing major economy, the 4th largest in the world by GDP, and
steadily moving toward sustainable growth. To make things even more tense,
Trump also took a jab at former Russian President Dmitry Medvedev, warning him
to “watch his words.” The sharp difference between Trump’s comments and India’s
actual economic progress has sparked debates over his real intentions, with
many now watching to see if his words turn into action or are just political
drama.
Now let see the impact if India embracing the non-Russian
oil, difficult to find the sufficient alternatives crude supplies in time. Any disruption
in oil supply would slow growth, tighten global supply and push up prices and
feed inflation. That can be the impact of India’s shifting to non-Russian Oil. RBI
also come up with the neutral stance in terms of monetary policy as of 50 basis
point rate cut has execute in the June.
Now through this move of the Trump, investors show global uncertainty
by pull out Foreign Portfolio Investors $900 million worth of Indian share in
August itself and $2 Billion in July. Indian market indexes felt pressurised,
NIFTY 50 and BSE Sensex fell 2.9% in July and are down by 0.7% in this month. However,
On Thursday, Dalal Street rebounded after an early sell-off caused by Trump’s
tariff announcement. The Sensex, after plunging over 700 points, ended 79
points higher at 80,623. Nifty50 also closed in the green at 24,596.
Trump’s tariff announcement isn’t just another headline—it’s
a move that could ripple through India’s trade, oil supply, and overall market
confidence. While India’s growth story is still strong, sudden geopolitical
shocks like this can shake investor sentiment, push up costs, and create
short-term turbulence. The next few weeks will reveal whether this is a passing
storm or the start of a longer trade tussle that India will need to navigate
carefully.
As the situation unfolds, we’ll be keeping a close eye on
these geopolitical developments and their ripple effects on markets, trade, and
India’s growth story.