US President Donald Trump’s sweeping 26 per cent tariff on Indian imports officially came into effect on Wednesday, sparking concern across global markets and heightening fears of a prolonged trade war. The Indian stock market opened sharply lower in response, reflecting broader investor anxiety over the growing list of US trading partners hit by steep new import taxes.

The move is part of Trump’s aggressive “reciprocal” trade strategy, which he unveiled on April 2 — a day he dramatically dubbed “Liberation Day.” In a fiery speech, Trump claimed the US had been “ripped off” for decades and vowed to tax nearly all of America’s trading partners at a minimum of 10 per cent, while imposing steeper tariffs on nations running trade surpluses with the US.

Tariff Targets: From India To EU

Besides the 26 per cent tariff on India, Trump announced tariffs of 46 per cent on Vietnam, 32 per cent on Taiwan, 25 per cent on South Korea, 24 per cent on Japan, and 20 per cent on the European Union. The highest duties — up to 50 per cent — have been reserved for smaller economies that trade less with the US, including a 50 per cent rate on Lesotho and 47 per cent on Madagascar.

Phased Rollout Of Tariff Rates

The initial 10 per cent baseline tariffs went into effect on Saturday. By midnight Wednesday, the elevated rates on dozens of countries and territories began to take hold, barring any last-minute reversals or diplomatic breakthroughs.

Economists have warned that these tariffs are likely to increase the cost of everyday goods for American consumers, particularly as they build on previous trade measures. For instance, Trump recently announced a 34 per cent tariff on China, adding to the 20 per cent duties already imposed earlier this year.

India’s Response: High-Level Cabinet Meeting Today

With markets in turmoil, several affected countries, including India, are expected to hold internal consultations and initiate dialogue with Washington. The Indian Union Cabinet is scheduled to convene today for a high-level meeting aimed at formulating a strategy to mitigate the economic fallout and protect key export sectors.