India will now face a lower reciprocal tariff of 10 per cent, down from 25 per cent, after US President Donald Trump announced a new global levy on items imported into America in the wake of the Supreme Court verdict against his sweeping duties on several nations.
'1991 was an exceptional period in Indian history.' 'A big 400-volt shock was administered to the system, which was required. Today, we are in a much, much better position.'
'Periods of heightened volatility, driven by global events such as tariffs and geopolitical tensions over the past year-and-a-half, can make some investors pause or discontinue their investments.'
Following a Supreme Court setback, Donald Trump has announced an increase in global tariffs from 10% to 15%, impacting international trade relations and raising concerns about economic repercussions.
US President Donald Trump asserted that the trade deal with India remains intact despite a Supreme Court ruling against his tariffs, while also claiming he used tariffs to stop a war between India and Pakistan.
Responding to a question on the trade deal being negotiated between the two countries, Trump said India had taken advantage of US policies for years and charged tremendous tariffs.
The official also advised all the trade partners to abide by the trade deals. The new 10 percent global tariff is part of Trump's protectionist trade agenda, aimed at addressing balance-of-payments issues and unfair trade practices.
Indian exports to the US will face a 10% tariff, down from 25%, for 150 days following a US Supreme Court ruling. However, uncertainty persists due to potential further tariff hikes and long-term implications.
India and the US have agreed to a trade deal that will see Washington reduce reciprocal tariffs on Indian goods from 25% to 18%, according to US President Donald Trump. The deal also includes commitments from India to reduce tariffs and non-tariff barriers against the US and to increase purchases of American products.
India has successfully negotiated the protection of its steel export interests under the free trade agreement with the UK, ensuring 85 per cent of its outbound shipments remain outside Britain's steel safeguard measures. This consensus addresses a key sticking point ahead of the comprehensive economic and trade agreement (CETA) coming into force on July 15.
FPIs have already withdrawn Rs 2.6 trillion from Indian equities in 2026, exceeding the outflows recorded in any previous full calendar year.
Prime Minister Narendra Modi announced that the India-UK Comprehensive Economic and Trade Agreement (CETA) will come into effect on July 15, 2026, anticipating a significant boost to bilateral trade and investment.
That means making it easier to invest, protecting investors through predictable rules, and avoiding policy reversals after investments have been made, notes Rajeswari Sengupta.
The verdict marks a notable shift from a series of recent wins for Trump at the Supreme Court.
Despite a sharp increase in import duties on gold and silver to 15 per cent, the precious metals are trading at significant discounts in the domestic market, with gold seeing discounts of up to $200 an ounce and silver up to $6 an ounce.
A 500 per cent tariff would effectively shut out India's goods and services exports to the US.
The Indian stock market's movement this week will be significantly influenced by the outcome of US-Iran talks, global crude oil prices, and the trading activities of foreign institutional investors (FIIs), according to market analysts.
India has strongly refuted claims by the United States Trade Representative (USTR) regarding excess capacity in its steel and textile sectors, arguing that the nation's significantly low per capita consumption of these products contradicts such assertions, according to Amitabh Kumar, Additional Secretary in the Ministry of Commerce.
Brokerages are forecasting a strong first quarter (April-June/Q1) for Reliance Industries Ltd (RIL) in FY2026-27, with double-digit revenue growth, Ebitda increases of around 12 per cent, and net profit rising up to 10 per cent, primarily driven by its oil-to-chemicals (O2C), retail, and Jio businesses.
Indian equity markets closed higher, driven by gains in PSU bank, auto, and financial stocks, following the US Supreme Court's decision on tariffs. Sensex climbed 479.95 points to 83,294.66, and Nifty advanced 141.75 points to 25,713.
The agreement addresses non-tariff barriers and promotes increased trade in technology products and cooperation between the two countries.
The report notes that equities had faced pressure from elevated valuation premiums, subdued nominal gross domestic product (GDP) and earnings growth, sustained foreign portfolio investor (FPI) selling, artificial intelligence (AI) infrastructure euphoria, and external shocks including US tariffs and a spike in crude oil prices due to geopolitical tensions in West Asia. However, several of these factors are now reversing.
India's hydropower generation has been significantly constrained in July due to the El Nio effect, which has weakened the southwest monsoon and reduced reservoir levels. This decline, following a 21 per cent year-on-year drop in June 2026, is forcing greater reliance on coal generation and straining grid flexibility amidst rising power demand.
India has significantly improved its position as a global foreign direct investment (FDI) destination, climbing two places to 11th in 2025, with inflows surging by nearly 44 per cent to $38.89 billion, according to the United Nations Conference on Trade and Development (Unctad) World Investment Report 2026.
Former US President Donald Trump claimed he stopped a war between India and Pakistan and expressed his desire to be remembered as a great peacemaker.
Finance Minister Nirmala Sitharaman on Wednesday said global trade is increasingly "getting weaponised" through tariffs and other measures, and India will have to negotiate its way carefully. She said that the overall strength of the economy will give the country an added advantage.
United States President Donald Trump on Saturday threatened to impose tariffs on Denmark and several European countries unless they agree to sell Greenland to the United States, framing the move as a national security imperative amid Chinese and Russian interest in the territory.
The India-Oman free trade agreement, operationalised on June 1, is set to create significant export opportunities for India's labour-intensive and value-added sectors, including textiles, gems and jewellery, and marine products, while also strengthening energy security.
Bharti Airtel is strategically shifting its focus towards data centres, cloud services, and financial services as key drivers for its next phase of growth, leveraging significant past investments in digital infrastructure, as outlined by Chairman Sunil Mittal in the company's Annual Report for 2025-26.
Neal Katyal, an accomplished Indian-American lawyer, triumphed in a landmark Supreme Court case against Donald Trump's tariffs, championing the Constitution and the rights of American small businesses.
Foreign investors have largely been exiting one part of the market while domestic investors have been enthusiastically accumulating another, points out Debashis Basu.
United States Senator Lindsey Graham on Sunday claimed that Indian Ambassador to the US Vinay Mohan Kwatra spoke to him last month about India buying less Russian oil and asked him to tell President Donald Trump to relieve the 25 per cent tariff.
American industry groups sought punitive tariffs on Indian goods at USTR hearings, while Indian officials defended the country's manufacturing growth as demand-led and WTO-compliant.
US Treasury Secretary Scott Bessent indicated a potential pathway to remove tariffs imposed on India for purchasing Russian oil, citing a significant decrease in such purchases. He also criticized Europe's approach and accused India of profiting from discounted Russian oil.
The US Supreme Court has struck down an executive order by President Donald Trump that sought to restrict birthright citizenship. The ruling reaffirms that the 14th Amendment guarantees citizenship to all persons born on American soil, including children of undocumented or temporarily present parents. This decision overturns a key policy initiative from Trump's second term.
The US Trade Representative has proposed an additional 12.5 per cent duty on goods from 54 countries, including India, citing their failure to prohibit the import of goods produced with forced labour. India has denied the allegations and called for the matter to be resolved through bilateral trade negotiations.
The Swadeshi Jagran Manch (SJM) is advocating for the termination of the moratorium on customs duties for electronically transmitted digital products, arguing that it hinders self-reliance, causes revenue losses, and restricts India's ability to tax emerging technologies like AI.
Trump's outburst comes amid escalating tensions between the US and its northern neighbour, following recent remarks by Canadian Prime Minister Mark Carney at the World Economic Forum (WEF) in Davos.
Indian equities on Dalal Street saw volatility as global market trends and fresh tariff concerns linked to Donald Trump impacted investor sentiment. Track Sensex, Nifty50 movement and key market drivers for Feb 24, 2026.
The Congress MP said he had been "troubled" by the US tariff regime from the very beginning, adding that India was already at a disadvantage compared to its regional competitors.
