Tariffs and $100 Oil Spark Market Sell-Off Amid Rising Trade Tensions

A fresh round of global trade tariffs and soaring oil prices above $100 have sent shockwaves through markets worldwide, sparking a sell-off in equities.

The US has imposed new tariffs on 60 major trading partners, citing the failure to clamp down on forced labor practices in their supply chains. The tariff rate is set at 10 percent for 54 countries, including India, and 12.5 percent for the rest.

Brent crude futures breached $100 per barrel for the first time since late May, before easing to around $97.75. The surge in oil prices has intensified volatility across asset classes, with benchmark indices Sensex and Nifty losing over 1 percent during the day on Friday.

Anuj Sethi, senior director at Crisil Ratings, warns that the proposed US tariffs on pharmaceutical generics could impact the business risk profiles of Indian pharmaceutical exporters. The US accounts for nearly one-third of India's pharmaceutical exports, predominantly generics.