GIFT Nifty slumps 80 points after US doubles tariffs on Indian exports

GIFT Nifty an indicator of how Indian equities are likely to start off, is indicating a lower start for Indian equities, but not as bad as last evening’s print indicated.The current implied open indicates a start 75 points below the close on Wednesday, which means that the Nifty may open below the 24,500 mark.

GIFT Nifty had declined over 200 points on Wednesday after US President Donald Trump signed an executive order imposing an additional 25% tariff on a wide range of Indian exports, citing India’s continued import of Russian oil despite Western sanctions.

The order, which invokes the International Emergency Economic Powers Act and the National Emergencies Act, will come into effect on Aug. 27 and impacts sectors including textiles, automobiles, and jewellry. Pharmaceuticals and semiconductors are exempt under Section 232 of the Trade Expansion Act of 1962.
Goods already in transit before the effective date will not be subject to the new duties.“I find that the Government of India is currently directly or indirectly importing oil from the Russian Federation,” Trump said in the executive order.

The new tariffs raise the effective duty on many Indian goods to 50%, bringing them in line with rates imposed on Brazilian exports.

The order allows for potential revisions depending on India’s response, including possible retaliation or steps to align more closely with U.S. strategic and economic interests.

Also Read: President Trump imposes an additional 25% tariff on Indian imports over Russian oil trade