- Indian stock market expected to open lower on Aug 7 after US tariffs imposed
- US President Trump imposed additional 25% tariffs on Indian goods from Aug 7
- Total tariffs on Indian goods will effectively reach 50%, excluding some exemptions
Trump Tariff Impact: The Indian stock market eyes a gap-down opening on Thursday, Aug. 7, after US President Donald Trump imposed additional 25% tariffs on import of Indian goods, over India's continued purchase of Russian crude oil. The total tariff on India has now doubled to 50%.
Trump's latest move comes a week after he announced 25% reciprocal tariffs against the country, starting from Aug. 7, citing wide "fiscal deficit" between India-US trading relations. After the order, the total tariff on Indian goods, barring a small exemption list, will effectively be 50%.
Trump Tariff Impact: GIFT Nifty indicates gap-down opening
At 9:35 pm, Gift Nifty traded around 24,535.50, down nearly 95 points, a discount of 79 points from the Nifty futures' previous close at 24,628, indicating a muted start for the Indian stock market on Aug. 7, 2025.
GIFT Nifty operates in two trading sessions. The first session runs from 6:30 a.m. to 3:40 p.m. IST. The second session begins at 4:35 p.m. and continues until 2:45 a.m. the following day. The Indian stock market settled lower today dragged by rate-sensitive stocks after the Reserve Bank of India (RBI) held key interest rates steady and maintained a 'neutral' stance, while concerns over ongoing US tariffs weighed on IT and pharma.
On Wednesday, the Nifty 50 benchmark fell 0.31% to 24,574.20, while the BSE Sensex lost 0.21% to 80,543.99. The broader small-cap and mid-cap indexes fell 1.1% and 0.8%, underperforming the benchmarks due to their higher exposure to the domestic economy and borrowing costs.
Trump hikes tariff on Indian imports to 50%
On Aug. 6, Trump signed an executive order mandating the imposition of additional import levies. "I find that the Government of India is currently directly or indirectly importing Russian Federation oil," he stated in the order, uploaded by the White House on the official website.
Notably, Trump signed an executive order imposing the additional tariff less than 14 hours before the initial tariffs were to come into effect. Last week, Trump had announced a 25% tariff rate on India and also had also threatened to impose additional 'penalties' on the country for its import of Russian oil.
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