How stock market players are bracing for Donald Trump’s reciprocal tariffs impact

US President Donald Trump’s new tariffs, set to begin on April 2, could have a $3.1 billion net impact on India’s exports to the North American country due to reciprocal tariffs, according to a new CareEdge Ratings report accessed by news outlet MoneyControl.

Smita Rajpurkar from CareEdge Ratings said that while Trump’s tariffs will have a direct impact of just 0.1% ($3.1 billion) on India’s GDP, there are bigger concerns about how they might affect overall market sentiment.

She shared these insights while presenting the report in Mumbai on Monday.

The government has introduced sectoral tariffs, including a 25% tariff on all steel and aluminium imports and a 25% tariff on automobiles and certain automobile parts. Other industries like semiconductors and pharmaceuticals are also under consideration.