Live Updates > Live Update Details
2025-07-31 16:14:16
Trump's Threat to Impose 25% Tariffs on India Causes Market Volatility: ⑴ US President Trump announced a 25% tariff increase on Indian imports, effective Friday. The Indian rupee fell to a 5.5-month low of 87.74 per dollar, with both the Nifty 50 and BSE Sensex indices falling by approximately 0.6%. ⑵ India's opposition Congress Party criticized the Modi government for its diplomatic failures and called for a debate in the lower house of parliament on the "government's economic diplomacy failure to prevent the US tariff increase." Commerce Minister Piyush Goyal is expected to brief Parliament later today. ⑶ Economists warn that the tariffs could reduce India's economic growth by 40 basis points in fiscal 2026. Data shows that the US trade deficit with India reached $45.7 billion. ⑷ Trump stated on social media that trade negotiations are ongoing, but India's tariff offer is worse than Vietnam (20%), Indonesia (19%), and Japan and Europe (15%). The US and Pakistan reached a tariff reduction agreement on Wednesday, but the specific tariff rates were not disclosed. (Refinitiv)
