In a major blow to market sentiment, GIFT Nifty witnessed a sharp fall late Wednesday, tumbling over 150 points after former U.S. President Donald Trump announced a 25% tariff on Indian imports, citing India’s continued energy and defense cooperation with Russia.
At 17:49 IST, the GIFT Nifty dropped to 24,700.50, down 153.50 points (-0.62%), with a steep red candlestick indicating heavy selling pressure.
Trump’s Tariff Trigger: Russian Oil and Arms Purchases
Trump took to his Truth Social platform to declare:
“India continues to buy huge amounts of oil and military equipment from Russia. This must stop. Starting August 1, a 25% tariff plus an additional penalty will apply to all Indian goods entering the U.S.”
This unexpected announcement marks a major pivot in U.S.-India trade relations. The “penalty tariff” will reportedly be levied on top of existing duties, targeting key Indian export sectors such as textiles, pharmaceuticals, and IT services, which collectively generate billions in annual trade.
