Investors do not appear to be overly concerned about the US tariffs that came into effect after midnight. Although the global trade war is now truly, and possibly irrevocably, underway, the Nasdaq Composite Index settled at yet another all-time high, while the S&P 500 Index closed broadly unchanged.
Whatever good standing Donald Trump had in the eyes of India’s Prime Minister, Narendra Modi, it has disappeared in a puff of tariff smoke. India was already smarting from the imposition of a twenty-five percent tariff last week, but with the threat of the levy doubling in three-weeks’ time if Delhi did not refrain from its oil trade with Russia, the outrage is almost seismic.
These days, there is rarely a single reason behind a reversal in market sentiment. Over the past week, a combination of economic data, newly announced import duties, and spontaneous policy decisions, including attacks on independent institutions, have taken their toll on market confidence. Not even the stand-alone tech sector was immune to the anxiety permeating financial markets. The already imposed punitive measures are likely to be followed by others, such as excise duties on pharmaceutical companies and semiconductors, not to mention China.
Copyright © 2025 TP ICAP