US President Donald Trump’s tariffs have unleashed chaos across the globe, plunging the Indian equity markets to their 10-month low and wiping out investor wealth of over Rs 20 lakh crore within seconds. Sensex opened nearly 4,000 points lower, sliding over 3.5% since its last trading session, while Nifty tanked over 1,000 points this morning. The crash follows a massive sell-off in Asian equities, panicked by Trump’s radical policies, and US futures pointing at significant losses when it resumes trading this evening. European markets too have slumped as panic selling continued.  

Read: Mega Plunge In Asian Markets, US Futures Down In Big Trump Tariff Fallout

The tariffs – billed as the harbinger of a “golden period” for US industries – seek to undo trade practices that President Trump believes have been unfair. The tariffs are country-specific and go as high as 50%. The rate announced for India is 26%, which has set off fears among exporters and traders, in addition to a 10% baseline duty applied to all nations.

A defiant Trump appeared unmoved by the bloodbath in global markets, equating his tariffs with a medicine that is required to “fix something” while speaking to reporters this morning.

Indian Equities Lose 3.5%

Sensex crashed 3, 939.68 points to 71,425.01 in early trade as trading resumed at 9 am after the weekend holidays. Nifty tumbled 1,160.8 points to 21,743.65 during this period. Sensex, a pack of India’s top 30 companies listed on the Bombay Stock Exchange, was down over 3,000 points at noon, while Nifty, the National Stock Exchange index, dropped below the 22,000 mark.

The rupee also opened lower this morning, falling 30 paise to 85.74 against the US dollar.

Analysts suggest Trump’s tariffs were bound to cause fears in Indian markets and that the country now needs financial reforms to protect its domestic economy from the global trade war.

Read: Sensex Crash Due To Trump Tariffs Wipes Out Rs 20 Lakh Crore Investor Wealth

“India will face the heat, not due to domestic reasons, but as an interlinked chain in the global portfolio flows. India will need a fiscal, monetary, and reform package to protect the domestic economy from this global economic winter that is threatening to settle in,” Ajay Bagga, a market expert, told ANI.

Sunil Gurjar, SEBI-registered research analyst, said Nifty50 has plunged through the first support level and is nearing the second, and a further breakdown would only extend the downward trend.

Global Equities

Asian equities, the first among all markets to open, have been hit the hardest as Trump tariffs extended a massive sell-off on the bourses in China, Japan, Taiwan, and Hong Kong. 

In China, where the Communist government has retaliated against the US with 34% tariffs, stocks have crashed over 4% while the Hang Seng index is down by over 10% in Hong Kong. Nikkei in Japan is down at least 6.5% after crashing over 8% in early trade. Taiwan’s main index collapsed nearly 10% and Singapore’s over 8%.

Read: Japan, Taiwan Markets Hit Circuit Breaker As Trump Tariffs Deepen Panic

European markets extended the losses with German stocks crashing 10% and French equities diving 4%. London indices too fell nearly 6% while Amsterdam and Oslo saw losses of about 5% and Milan was down by over 3%.

The situation is grim for Wall Street too. Futures contracts were sharply down on the New York Stock Exchange, suggesting significant losses were about to come when the US markets open on Monday.

Besides sparking an equity free-fall, Trump’s trade policies have also sparked fears of global recession, and his defiance has caused concern among market experts. SPI Asset Management’s Stephen Innes fears a global recession may be coming soon. “The market is in free-fall mode again, punching through floors. Trump’s team isn’t blinking. The tariffs are being treated as a victory lap, not a bargaining chip.”