Trump’s 50% Tariffs Rattle Indian Markets, Spark Broad Selloff

India's equity markets tumbled after the U.S. imposed steep 50% tariffs on key imports, with the Nifty 50 and Sensex both shedding over 1% in a single session. Export-heavy sectors—particularly textiles, jewelry, and seafood—bore the brunt of the selloff as traders priced in collapsing competitiveness in American markets.

The shockwaves extended beyond directly affected industries, reflecting growing fears about secondary economic damage. Nearly $50 billion of exports now face existential pressure, threatening the jobs and dollar inflows that sustain entire regional economies.

Foreign investors executed rapid capital flight while domestic buyers attempted to cushion the blow. The episode underscores how quickly trade policy shifts can destabilize emerging markets—a volatility dynamic that historically drives capital toward decentralized assets.