So, remember that one time you woke up, checked your phone, and saw the market had tanked before you’d even had chai? Yeah. Blame Trump. Or at least, partially.
Donald Trump — the man, the meme, the market mover — has this weird power to mess with economies thousands of miles away, even if he’s not in the Oval Office anymore. Back when he was President (and even now when he drops a truth bomb on Truth Social), every time he threw around the word “tariffs,” global markets basically had a mini heart attack. And the Indian share market? Oh, it flinches like a scared cat hearing fireworks.
Tariffs and tantrums
To keep it simple: tariffs are taxes on imports. So when Trump said, “Hey, let’s slap more tariffs on Chinese goods,” or threatened India with trade penalties over things like Harley-Davidson bikes or dairy exports (yes, dairy… random, I know), investors went into panic mode.
It’s like when someone in your WhatsApp family group says the word “lockdown” — everyone suddenly rushes to stock up on Maggi. Markets react kind of like that. Emotional. Irrational. Slightly dramatic.
Why does India care?
Here’s the tea: India might not be the direct target of these tariffs all the time, but we’re kind of like the friend who gets dragged into the fight anyway. Global supply chains are all tangled up — if US slaps tariffs on China, China retaliates, and suddenly everyone’s scrambling to find new trade routes and suppliers. That ripple hits us too. Companies here that export to the US or rely on Chinese parts? Boom — their stocks get slapped harder than a Bigg Boss contestant.
Also, FII (foreign institutional investors) — the big money guys — don’t like uncertainty. Trump saying “tariffs” is like yelling “fire” in a theater for them. They pull money out of emerging markets (like India) and run for safe assets. So the moment he starts talking tough on trade, the rupee weakens, Sensex slides, and you start regretting checking your Zerodha app.
Real-life example? Yep.
I remember this one day in 2019 (I think it was June?), Trump tweeted something about removing India from the Generalized System of Preferences (GSP). Basically, it meant some Indian exports would lose tariff-free access to the US. Markets went red instantly — like full-on bloodbath mode. My friend had just bought into pharma stocks thinking they were “safe.” Spoiler: they weren’t. He messaged me “bro I’m uninstalling Moneycontrol” like it was going to save his portfolio.
The Twitter factor
What’s wild is how much power Trump’s tweets used to have. One 280-character message could wipe billions off market caps. Analysts had to literally monitor his social media like hawks. It got to the point where financial news channels had Trump tweet alerts. Imagine that. A literal Trump Tweet Alert moving your mutual fund NAV.
Even now, with him prepping for 2024 (assuming he doesn’t get disqualified or something), every time he opens his mouth about tariffs, trade, or being “tough on China,” the Indian market perks up nervously, like it just heard thunder on a cloudy day.
Niche stat you didn’t ask for
Between 2018–2020, during Trump’s trade war with China, India’s export growth to the US actually went up by about 9%. So yeah, there’s a silver lining: while Trump was busy picking fights, we got a small bump in certain sectors like textiles and engineering goods. Opportunistic much? Maybe. But that’s international trade for you.
Anyway, all this to say: Trump might be across the globe, yelling into a mic at a rally in Ohio, but Dalal Street hears it loud and clear. And reacts. Sometimes too much.
So next time you’re sipping coffee and see the Sensex down 600 points, don’t just blame crude oil or FIIs or RBI rates. Maybe, just maybe… Trump tweeted again.
