Sensex jumps 500 points amid Trump’s tariff worries; Who are his ‘Dirty 15’?

The Indian stock market opened on a positive note on Wednesday, defying concerns over US President Donald Trump's upcoming "Liberation Day" tariff announcement. This comes after the previous session witnessed sharp declines, with Sensex and Nifty falling by 1.8% and 1.5%, respectively—marking their steepest drop in a month.

Market Rebounds Despite Trade Uncertainty

Contrary to expectations, the Sensex gained over 500 points, and the Nifty rose by more than 100 points in early trading. As of 10:50 AM, the BSE Sensex stood at 76,533.11, up by 508.60 points, while the NSE Nifty50 climbed 132.65 points to 23,298.35.

Most broader market indices also registered gains, reversing losses from the previous session.

Why is the Stock Market Rising?

According to Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, uncertainty around reciprocal tariffs may have eased ahead of Trump's announcement. However, he cautioned that given Trump's inconsistent stance on tariffs, some level of unpredictability remains.

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, explained, "Markets have already priced in the impact of the tariffs in yesterday's session. Today, positive cues from Asian markets are aiding the recovery."

Anita Gandhi, founder of Arihant Capital Markets, emphasized that multiple factors beyond tariffs are at play. "The market is also preparing for the upcoming results season and the Reserve Bank of India's monetary policy decision. These elements will shape the market's direction alongside trade policies."

Bathini added that Nifty must hold above the 23,000 mark for the market to maintain a positive trajectory in the short to medium term. Investors, he advised, should wait for further clarity on tariffs before making major moves.

Vijayakumar also noted that if the tariffs turn out to be harsher than expected, markets could face another round of sell-offs. However, he maintained that domestic consumption-driven sectors would likely remain resilient despite external pressures.

Trump's 'Liberation Day' Tariffs: What to Expect

Set to be announced on April 2, President Trump's "Liberation Day" tariffs are expected to impose duties on countries perceived to have unfair trade practices or high tariffs on US goods. While full details remain undisclosed, the White House has indicated that a group of nations, termed the "Dirty 15," will bear the brunt of these new trade measures.

Trump has long argued that global trade policies have disadvantaged the US, and this latest move aligns with his broader effort to favor American businesses.

Who are the 'Dirty 15'?

US Treasury Secretary Scott Bessent recently referenced a list of 15 nations that impose significant tariffs and trade barriers on US goods. While the exact names have not been confirmed, data from the US Commerce Department's 2024 trade deficit report suggests that the following countries are likely on the list:

China

European Union

Mexico

Vietnam

Ireland

Germany

Taiwan

Japan

South Korea

Canada

India

Thailand

Italy

Switzerland

Malaysia

Indonesia

These nations account for a significant portion of the US trade imbalance and are expected to face the strongest repercussions from the new tariffs.

Additionally, the Office of the US Trade Representative (USTR) has identified 21 countries that engage in trade practices it deems unfair. The full extent of the tariff implications will become clearer as Trump's announcement unfolds later today.