India’s stock market faced a major crash on Monday, with investors shaken by rising global trade tensions and growing fears of a recession in the U.S. This led to a huge sell-off not just in India but also across Wall Street and other Asian markets.
The BSE Sensex plunged by 3,939.68 points, or 5.22%, in early trading, falling to 71,425.01. It was one of the biggest drops in recent times. The total market value of all companies listed on the BSE dropped sharply — by over ₹20 lakh crore, bringing the value down to around ₹383 lakh crore.
This wasn’t just an Indian issue. Asian stock markets also tumbled, reacting to Friday’s sharp decline in U.S. markets. The main cause behind all this panic? Former U.S. President Donald Trump’s new tariff policy kicked in on April 2.
What’s Happening?
Trump’s new “reciprocal” tariffs now impose a 10% tax on all goods entering the U.S. On top of that, he’s added even higher taxes for countries that sell more to the U.S. than they buy. Here’s how the new tariffs look:
- China: 34%
- European Union: 20%
- South Korea: 25%
- Japan: 24%
- Taiwan: 32%
These are in addition to earlier taxes, including a 20% tariff on all Chinese imports, announced earlier this year.
Why Are Investors Worried?
The impact was felt immediately. U.S. stock futures showed signs of more losses:
- S&P 500 futures fell by 2.5%
- Dow Jones futures dropped by 2.1%
- Nasdaq futures slipped by 3.1%
These moves have raised concerns among investors worldwide. People are now worried that these aggressive trade measures could seriously damage global trade, slow down economic growth, and even lead major economies into a recession.
In short, the global markets are on edge — and it looks like the ripple effects of Trump’s trade policy are just beginning to unfold.
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