Published by The Rupee Voice on March 27, 2025

Global markets breathed a cautious sigh of relief as U.S. President Donald Trump suggested flexibility in the implementation of new tariffs slated for early April. With traders on edge about geopolitical volatility, the mere hint of exemptions and delays sent equities higher and calmed short-term fears.

Key Developments:

• President Trump hinted that not all new tariffs would be enforced on April 2 and that some countries could be exempted.
• The U.S. also proposed a 25% tariff on oil and gas purchases from Venezuela.

Market Reaction: Asian markets responded with a broad rally:

• Nikkei: +0.35%
• KOSPI: +0.37%
• ASX: +0.76%
• Hang Seng: +0.8%
• Chinese blue chips remained flat

Meanwhile, the U.S. Dollar Index nudged up 0.07% after a slight drop earlier in the week.

Rupee Voice Analysis: While markets are pricing in tariff relief, the overall stance of the U.S. administration remains unpredictable. Investors should be wary of policy whiplash. For Indian markets, any global slowdown triggered by trade disruption can indirectly affect exports and capital flows.

What to Watch: April 2 remains a critical date. Any escalation or surprise tariff action could spark volatility in commodities and EM currencies, including the Indian Rupee.