On July 8, 2025, Indian equity markets are poised for a cautious opening due to new U.S. tariffs and the upcoming earnings season. The global impact includes potential economic slowdowns and trade tensions, affecting sectors like automobiles and textiles. This news is based on reports from AP News, Reuters, and the Financial Times.
U.S. President Donald Trump announced new tariffs on imports from 14 nations, including Japan and South Korea, on July 7, 2025. A 25% levy will be applied to imports from Japan and South Korea, effective August 1. Additional tariffs, ranging from 25% to 40%, will affect 12 other countries.
The Indian market is reacting cautiously, with the GIFT Nifty futures trading 26 points lower at 25,490 at 8:00 AM. The automobile and textile sectors are particularly vulnerable. Economists estimate the tariffs could reduce India's GDP growth by 0.2% to 0.5%.
The Reserve Bank of India's projected 6.5% growth for the current fiscal year may be revised downwards. Investors are closely watching trade negotiations and the earnings season. Further tariff hikes are possible if countries retaliate, as warned by President Trump.