The iShares MSCI India ETF rose 1.3% after the US Supreme Court ruled against former President Trump’s global tariff agenda, which had imposed broad duties on trading partners. The decision is expected to ease trade tensions, lower costs, and improve investor sentiment toward emerging markets, including India.
The iShares MSCI India ETF climbed 1.3% on Thursday following a landmark ruling by the US Supreme Court, which struck down the legality of Trump-era global tariffs. The tariffs, imposed under emergency powers, had raised the average effective US tariff rate to nearly 17%—the highest since the 1930s.
The Court’s decision is widely seen as a relief for global trade, particularly for emerging markets like India, which had faced higher duties on exports to the US. Analysts noted that the ruling could reduce trade frictions, lower import costs, and improve competitiveness for Indian companies in sectors such as textiles, engineering goods, and IT services.
Investor sentiment responded positively, with the India-focused ETF recording gains, reflecting optimism that reduced tariff barriers will support stronger capital flows and enhance India’s export outlook.
Economists highlighted that the ruling may also benefit US consumers by lowering prices on imported goods, while simultaneously boosting demand for Indian exports. The development comes at a time when India is negotiating trade deals with the US and EU, further strengthening its external sector outlook.
Key Highlights
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ETF Performance: iShares MSCI India ETF up 1.3% post-ruling.
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Supreme Court Decision: Struck down Trump-era global tariffs imposed under emergency powers.
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Tariff Impact: Average effective US tariff rate had reached 17%, highest since 1930s.
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India Outlook: Reduced trade frictions expected to boost exports and investor confidence.
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Sectoral Gains: Textiles, engineering, and IT services likely to benefit.
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Global Impact: Lower import costs for US consumers; improved competitiveness for emerging markets.
Sources: CNBC – Supreme Court Tariff Ruling Analysis; Reuters – Market Reaction to Tariff Decision; Bloomberg – iShares MSCI India ETF Performance Update