NIFTY50 likely to see solid start today as US suspends additional 26% tariff on India till July 9

On April 2, US President Donald Trump slapped universal duties on about 60 countries exporting goods to America and additional steep levies on countries like India, potentially impacting sales of products from shrimp to steel in the world's biggest economy. The move was aimed at cutting its trade deficit and boosting domestic manufacturing.

The US imposed an additional import duty of 26% on India. The tariffs were high on its competitors like Thailand, Vietnam, and China.

This suspension of tariffs does not apply to China, including Hong Kong and Macau.

"Effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. Eastern Daylight Time on April 10, 2025, enforcement of the second paragraph of Section 3(a) of Executive Order 14257 is suspended until 12:01 a.m. Eastern Daylight Time on July 9, 2025," the order said.

The second paragraph of Section 3(a) of the executive order issued on April 2 mentions the implementation of reciprocal tariffs. It includes Annex 1, listing the rate of tariffs for different countries.

However, the 10% baseline tariff imposed on the countries will continue to remain in place.

Besides, the 25% duty on steel, aluminium (effective from March 12), auto, and auto components (from April 3) also continues.

The stock market was closed on Thursday, April 9, on account of Mahavir Jayanti.

Global Markets

US stocks ended sharply lower in the overnight trade as President Donald Trump's trade war continues to threaten the economy.

The S&P 500 tumbled 3.5%, slicing into Wednesday's surge of 9.5% following Trump's decision to pause many of his tariffs worldwide. The Dow Jones Industrial Average dropped 1,014 points, or 2.5%, and the Nasdaq Composite tumbled 4.3%.

“Trump blinks,” UBS strategist Bhanu Baweja wrote in a report about the president's decision on tariffs, “but the damage isn't all undone.”

On Friday, Asia-Pacific markets fell. Australia’s S&P/ASX 200 fell 2.28%.

Japan’s Nikkei 225 lost 5.46%, while the Topix traded 5.05% lower. South Korea’s Kospi fell 1.55%, and the small-cap Kosdaq declined 0.11%.

Last seen, Hong Kong’s Hang Seng Index was down over 1% while China’s CSI 300 was trading 0.52% lower.