Weighed down by concerns that higher US tariffs could hurt the Indian economy, both benchmark indices posted another session of steep losses. The Nifty 50 broke its key support level, falling 0.85% to 24,509 points, while the S&P BSE Sensex slipped 0.87% to the 80,080 level.
The broader markets also ended with sharp losses, as the Nifty Midcap 100 and Nifty Smallcap 100 indices dropped over 1.3% each. All major sectoral indices closed lower, barring the Nifty Consumer Durables index. Among the worst hit were Nifty IT and Nifty Realty, which declined 1.60% and 1.50%, respectively.
The 50% tariffs on Indian goods imposed by the Donald Trump administration came into effect on Wednesday, following a notice issued by the US Customs and Border Protection (CBP).
According to the notice, the additional duties are being levied to implement the President’s Executive Order 14329 of August 6, 2025, titled “Addressing Threats to the United States by the Government of the Russian Federation.”
President Trump, who has frequently described India as a “tariff king,” cited the US trade deficit with India and New Delhi’s continued purchases of Russian oil and military equipment as reasons for the move.
The higher duties apply to all Indian products either entered for consumption in the US or withdrawn from bonded warehouses. With this, the 50% tariffs on Indian imports into the US are now in full force.
Earlier, on July 30, US President Donald Trump had announced an additional 25% tariff on Indian goods. In contrast, competitors such as Vietnam (20%), Bangladesh (18%), Indonesia, Malaysia, and the Philippines (19%), as well as Japan and South Korea (15%), enjoy significantly lower rates, according to reports.
Indian Prime Minister Narendra Modi remained firm, asserting that his government will find a way forward despite the economic pressure from Washington as the tariffs take effect.
An analysis by ICRIER estimates that nearly 70% of India’s exports, valued at USD 60.85 billion, are exposed to the elevated duties. Economists at SBI Research estimate that the impact of a 50% tariff on the economy will be significant in the long run. The tariffs will apply to $45 billion worth of major Indian exports.
Sectors such as textiles and gems & jewelry—both labor-intensive industries—are expected to face moderate pressure, SBI Research said, adding that it is also concerned India’s trade surplus with the US could dissipate in the worst possible scenario.
