Investing.com-- Indian stocks crept lower on Tuesday after a White House adviser said the country’s tariffs were “enormously high,” sparking concerns over concentrated tariff action against Delhi.
Focus was also on an upcoming meeting between Indian Prime Minister Narendra Modi and U.S. President Donald Trump, set to take place later this week as Modi visits the U.S.
The Nifty 50 fell 0.4%, while the BSE Sensex 30 shed 0.2% on Tuesday. Both indexes were nursing at least three straight days of consecutive losses, and were trading close to 1-½ year lows.
Kevin Hassett, who is nominated as Trump’s director of the National Economic Council, told CNBC that India had high tariffs that dissuaded U.S. imports. His comments came as Trump flagged the potential for reciprocal tariffs that will at least match tariffs imposed by trading partners- a move that could invite more tariff action against India.
Trump on Monday announced a 25% tariff on steel and aluminum imports, and also said he will outline plans for reciprocal tariffs later this week. This came after Trump imposed 10% tariffs against China last week.
Modi is set to meet Trump later this week, with a Reuters report suggesting that he will outline concessions that will boost American exports to India.
The report also said that India was planning tariff cuts across a dozen sectors, including electronics and consumer goods.
Trump has previously called India a “very big abuser” of trade.
The prospect of U.S. tariff action bodes poorly for India’s economy, which is set to grow at its slowest pace in four years in fiscal 2025, as its stellar growth run over the past three years slows down.
Concerns over slowing growth had triggered massive foreign outflows from Indian stock markets through late-2024, with the Nifty briefly entering a bear market.