Indian Exporters’ Stocks Slide as U.S. Tariff Threat Sparks Market Worries — Experts Say Further Downside Possible

Indian markets saw renewed pressure due to worries over proposed U.S. tariff hikes on Indian exports, causing sharp declines in export-oriented shares and broader equity indices.

Exporters’ Stocks Take a Hit
Shares of companies heavily reliant on exports fell steeply after former U.S. President Donald Trump signalled support for legislation that could impose tariffs as high as 500 % on Indian imports — on top of existing duties — if India continues buying Russian oil. This message prompted investors to sell export-linked stocks, notably in textiles, apparel and other overseas-focused sectors.

In the following sessions, export-heavy stocks such as Avanti Feeds and Kitex Garments slid up to 7 %, reaffirming that tariff fears are weighing on investor sentiment across multiple days.

Markets Show Broader Weakness
The uncertainty surrounding increased trade barriers also hit broader market sentiment: benchmark indices witnessed some of their biggest up-moves lower in recent months, with the Sensex and Nifty recording notable point losses as investors grew cautious amid the tariff talk and associated macro-economic concerns.

What Experts Are Saying
Analysts point out that while these proposals are still in early stages and involve complex legislative steps, the mere anticipation of steeper tariffs has already impacted sentiment on Dalal Street. Some experts argue that if such tariffs were enacted or even gain political traction, it could add to downside risk for export-driven sectors and dampen overall market performance in the near term.

At the same time, other market participants highlight that tariff worries are contributing to foreign fund outflows and heightened volatility, with investors monitoring both the evolving geopolitical landscape and domestic economic data for direction.

Key Takeaway for Investors

• Export-oriented stocks are most immediately affected by tariff fears.
• Broad markets also feel the impact through sentiment and fund flows.
• Uncertainty about policy outcomes continues to keep volatility high.