A $5 trillion loss hit Wall Street as the S&P 500 dropped 6% after Donald Trump’s tariff hikes sparked fear of a global recession. China’s retaliatory tariffs intensified market losses. Federal Reserve Chair Jerome Powell warned of higher inflation and slower growth, while Trump remained defiant, labeling the economic turbulence as necessary for correcting trade imbalances.

US buyers are demanding 15-20% discounts from Indian exporters due to increased tariffs. Large retailers remain steady, while smaller exporters face order delays. The clothing and gems sectors are particularly impacted, with higher tariffs causing uncertainty. Despite challenges, Indian suppliers remain key partners for global retailers adjusting their strategies.

Indian officials face challenges in trade negotiations with Asean due to the presence of Chinese companies in the bloc. The issue echoes global concerns, particularly for the US, which has implemented high tariffs to curb Chinese economic dominance. This scenario complicates trade dynamics, especially with recent tariff retaliations from China.