Trump tariff exemptions, 90-day pause: Reasons behind Sensex, Nifty rebound

Apr 15, 2025
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Apr 15, 2025 11:34 AM IST

On Tuesday, Indian stock markets climbed as BSE Sensex gained 1,386.47 points and NSE Nifty saw a hike of 413.10 points

Indian markets opened on a green note on Tuesday after the long weekend amid hints of ease in Donald Trump’s reciprocal tariffs. As of 9:15 am, the BSE Sensex had jumped 1,386.47 points or 1.84 per cent and touched 76,543.73, while NSE Nifty saw a hike of 1.81 percent, of 413.10 points and reached 23,241.65

The jump in the market came after Trump administration announced that electronics will be exempted from the individual reciprocal tariffs.(PTI)
The jump in the market came after Trump administration announced that electronics will be exempted from the individual reciprocal tariffs.(PTI)

The positive trend in the Indian stock market resonates with several Asian markets alike as United States President Donald Trump announced certain exemptions in the reciprocal tariffs he had announced, currently on a 90-day halt.

Why the stock market rebounded

The jump in the market came after Trump administration announced that electronics such as smartphones, computers, and others will be exempted from the individual reciprocal tariffs over the weekend.

After the markets across Asia crashed after Trump’s ‘Liberation Day’ tariff announcements, the 90-day halt also brought some relief and gave the markets a breather to recover. While the individual reciprocal tariffs are on halt, the base tariff of 10 per cent on almost all US imports is in place.

In another major relief, Trump has hinted that he might exempt auto-related imports from the reciprocal tariffs too. Following this, India saw a jump of 3 per cent in auto shares on Tuesday, reported Reuters.

Among the major gainers in the auto sector are Samvardhana Motherson, with a jump of 7 per cent, US-reliant parts makers Bharat Forge and Sona BLW with a jump of 6 per cent each, and Tata Motors with a 5 per cent hike, the report added. .

Temporary relief?

While the markets are recovering amid uncertainty over Trump tariffs, it has been made clear by the United States that the exemptions announced on electronics are temporary.

US Commerce Secretary Howard Lutnick on Sunday said that the relief on reciprocal tariffs on electronics are temporary. In a conversation with ABC’s ‘This Week’, Lutnick said in a month or two, new sector-specific tariffs may be announced on semiconductor products, which could include electronics.

Confirming this, Trump took to his own social media platform ‘Truth Social’ and said that there were no exemptions at all and that the products were just moving to a different “bucket”.

“There was no Tariff “exception” announced on Friday. These products are subject to the existing 20% Fentanyl Tariffs, and they are just moving to a different Tariff “bucket”” he said.

“We are taking a look at Semiconductors and the WHOLE ELECTRONICS SUPPLY CHAIN in the upcoming National Security Tariff Investigations,” he added.

With agency inputs.

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