Why are stock markets falling today, are Trump's tariffs to blame?

Global financial markets have plummeted as a result of US President Donald Trump's 25% tariffs on imports from China, Canada, and Mexico that go into force on Tuesday, March 4, 2025. The benchmark BSE Sensex fell 341.82 points, or 0.47 percent, to 72,744.12, while the more general NSE Nifty opened 132.80 points lower, or 0.6%, to 21,986.50, as the Indian stock market, in particular, plummeted at the start of Tuesday.

The Indian stock market on Tuesday saw a record 10th straight day of decline amid continuous selling by overseas investors. The S&P 500 lost 104.78 points, or 1.76 percent, the Dow Jones Industrial Average sank 649.67 points, or 1.48 percent, and the Nasdaq Composite fell 497.09 points, or 2.64 percent. The largest declines were seen by Hong Kong's Hang Seng and Japan's Nikkei, which fell more than 2% and 1.5%, respectively.