Sensex Drops Over 500 Points After Trump Announces 26% Reciprocal Tariff

Sensex Sinks 500+ Points as Trump Imposes 26% Reciprocal Tariff

Written by: Supriya Kadu

Edited by: Pinky Deshmukh

Last Updated: April 03, 2025

Summary: Sensex plunges over 500 points after Donald Trump announces a 26% reciprocal tariff, triggering market uncertainty and investor concerns over trade.

When former U.S. President Donald Trump announced a 26% reciprocal tax, the Indian stock market saw a dramatic decline, with the Sensex plunging more than 500 points. Global markets suffered this unexpected tariff increase, which has sparked worries about trade ties and economic stability.

Investors reacted swiftly to the news, with heavy selling pressure in sectors such as IT, automotive, and export-driven industries. Nifty also followed the downward trend, struggling to hold key support levels. Many believe that India's trade competitiveness, particularly in industries that rely on exports to the U.S. The uncertainty surrounding future economic policies has added to investor nervousness, leading to heightened market volatility.

Major stocks, including those in the technology and manufacturing sectors, experienced sharp declines as concerns over increased trade costs and reduced profit margins loomed. According to analysts, investors will be keenly monitoring world events and possible government reactions, making it a pivotal factor in deciding the market's stability in the days ahead.

While some experts believe the drop presents a buying opportunity, others advise caution given the unpredictable geopolitical climate. It is anticipated that the Indian government will assess the effects of Trump's tariff strategy and take steps to safeguard its own businesses.

With global trade tensions rising, market participants remain on edge, bracing for further fluctuations as they await clarity on how these tariffs will impact India’s economy in the long run.