The Indian stock market fell sharply in Tuesday’s session, with benchmark indices losing over 1% after U.S. President Donald Trump’s administration confirmed an additional 25% tariff on Indian imports, a penalty announced earlier this month by Washington for India’s continued purchase of Russian oil. 

The Nifty 50 closed the session with a steep loss of 255 points, or 1.02%, at 24,712, while the S&P BSE Sensex declined 1.05% to 80,779. Broader markets also witnessed heavy selling, with the Nifty Midcap 100 falling 1.62% and the Nifty Smallcap 100 plunging over 2%.

The 25% penalty will come into effect from August 27, taking total tariffs on Indian imports of up to 50%, the highest among U.S. trading partners. This has raised concerns among Dalal Street investors that it could weigh on India’s economic growth at a time when the country is trying to recover from the slowdown of the last fiscal year.

Export-oriented stocks bore the brunt of the sell-off, particularly textiles, chemicals, and gems & jewellery, shrimp, whose top line is heavily dependent on the U.S. market.