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What will affect the stock market by applying Donald Trump tariff? Understand the whole matter in detail – What Donald Trump Tariffs Against Chia Canada Maxico Mean for the Indian Stock Market

US President Donald Trump has been doing something new every day when he has been sitting on the throne again. Even today, one of his decisions on 3 February caused a lot of global markets. India’s stock market also closed down. It has happened that Trump has again imposed tariffs on three countries- Canada, Mexico and China. He has announced 25% tariffs on Canada and Mexico and 10% on China. This trembled the entire global stock markets today. But the real question here is, after all, what will be the impact of Trump’s elements on India, and especially on the economy of India and its stock market. Will there be loss or is there any benefit?

Donald Trump’s decision may have 2 major impact on India. There is good news in this and the other is bad. The good news is that Trump has imposed tariffs on Mexico and Canada as well as China. This will make the same expensive from these three countries to America. The direct effect of this will be that American companies who are still purchasing the same from China, Mexico, Canada and will now have to look for new suppliers for cheap equal. Anyway, India has been seen as an alternative to China for the last few years, and under the ‘China Plus One’ strategy, the possibility of shifting more and more in India has increased. In such a situation, Indian manufacturing companies can get a big benefit here.

But there are some concerns here. Canada and Mexico have also vowed to retaliate with tariffs on America. China has talked about challenging this decision of America in the World Trade Organization (WTO). Due to all this, the possibility of starting a global trade war globally has increased. If this happens, then there is a movement of equities all over the world, there may be obstacles in it.

Due to this, inflation is expected to increase in India as many important components and raw materials still import from abroad. In such a situation, if their prices rise, then it is obvious that domestic industries will be under pressure. “

The second effect is that this decision of Trump may strengthen the US dollar index, which is bad news for the stock market. Strength in the US dollar index means that foreign investors will continue selling in India. When the dollar is strong, foreign investors withdraw money from emerging markets like India and invest in American assets. This is the reason that Indian stock markets are getting continuous selling.

Since October, foreign investors have withdrawn about 2.6 lakh crore rupees from Indian stock markets. If the dollar remains strong, this trend may continue even further.

Amidst all this, the decline in the value of Indian rupee is also an important issue. The dollar has increased from 100 to 110 since September, and during this time the Indian rupee has also fallen from 83.8 to 87.16 to the historic low. However, against the decline in the currency of the rest of the emerging countries, India’s decline is less. But still it is so much that it can import imports and increase inflation pressure. “

“However, there is also a relief news for India! India is not yet on the tariff list of America. So far we are saying because Trump threatened to put tariffs on BRICS countries to stop China and India The BRICS is an important member country of the organization. But at present, Trump has imposed a tariff only on China, which can give an opportunity to improve business relations between New Delhi and Washington. .

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