The US stock market crashed on Thursday after President Donald Trump’s sweeping trade tariffs raised fears of an all-out trade war across the world and a looming global economic recession. The Wall Street benchmark indices ended with the largest single-day percentage losses since 2020. The Dow Jones Industrial Average crashed 1,679 points, or 3.98 per cent, while S&P 500 fell by 275 points or 4.84 per cent. The Nasdaq Composite fell by 1050 points, or 5.97 per cent lower. The Chinese commerce ministry demanded that the US must withdraw 34 per cent additional tariff and threatened to initiate countermeasures. After Trump imposed a 26 per cent tariff on India, the Commerce Ministry, in a guarded statement, said it is in close touch with industry and exporters, and it is assessing the situation while taking feedback from stakeholders. Indian goods imported by the US will now become costlier. This could result in lesser demand from the US and lesser exports to America. But the positive sign is that a huge tariff has been slapped by Trump on countries that are our competitors in export. This could result in a rise in the export of Indian textiles and electronic goods because high tariffs on China, Thailand, and Bangladesh could give an advantage to India in trade with the US. Machinery, toys, and automobiles are areas where India may increase its production and export to the US. India has got a good opportunity, but to achieve that, India will have to concentrate more on ‘ease of doing business’ and strengthen its logistics and infrastructure. Trump’s tariff can have a negative effect on our textile, diamond, automobile, and steel sectors, but he has spared India’s pharmaceutical, semiconductor, copper, and some energy sectors like oil, LNG and coal.OPINION | Trump’s tariff: challenge or opportunity?
The US stock market crashed on Thursday after President Donald Trump’s sweeping trade tariffs raised fears of an all-out trade war across the world and a looming global economic recession. The Wall Street benchmark indices ended with the largest single-day percentage losses since 2020. The Dow Jones Industrial Average crashed 1,679 points, or 3.98 per cent, while S&P 500 fell by 275 points or 4.84 per cent. The Nasdaq Composite fell by 1050 points, or 5.97 per cent lower. The Chinese commerce ministry demanded that the US must withdraw 34 per cent additional tariff and threatened to initiate countermeasures. After Trump imposed a 26 per cent tariff on India, the Commerce Ministry, in a guarded statement, said it is in close touch with industry and exporters, and it is assessing the situation while taking feedback from stakeholders. Indian goods imported by the US will now become costlier. This could result in lesser demand from the US and lesser exports to America. But the positive sign is that a huge tariff has been slapped by Trump on countries that are our competitors in export. This could result in a rise in the export of Indian textiles and electronic goods because high tariffs on China, Thailand, and Bangladesh could give an advantage to India in trade with the US. Machinery, toys, and automobiles are areas where India may increase its production and export to the US. India has got a good opportunity, but to achieve that, India will have to concentrate more on ‘ease of doing business’ and strengthen its logistics and infrastructure. Trump’s tariff can have a negative effect on our textile, diamond, automobile, and steel sectors, but he has spared India’s pharmaceutical, semiconductor, copper, and some energy sectors like oil, LNG and coal.
