The US stock market fell by 1.69% as a result of Trump's "Liberation Day" policy and created global panic for India, Thailand, and Brazil.

The US stock market fell on Friday when the Dow Jones Industrial Average lost 715.80 points, or 1.69%, to 41,583.90. The S&P 500 dropped 112.37 points, or 1.97%, as investors grew more anxious about the possible impact of retaliatory tariffs becoming effective on April 2 under the "Liberation Day" policy of the Trump administration.

The suggested tariffs have also raised alarm in the entire global markets, especially for nations such as India, Thailand, and Brazil that would face increased duties in the event of the US countering with the same tariffs on their exports. Nomura economists recommend that a partial introduction of the tariffs can still have dramatic implications. Nevertheless, the magnitude of the tariffs is likely to be higher in solving trade deficit, currency manipulation, and digital taxes.

Experts like VK Vijayakumar of Geojit Investments note that the market reaction is greatly subject to the severity of the tariffs. If the actions are not too drastic, a market rally can persist, but it is not certain. Experts also note that the tariffs can be used for geopolitical purposes, so it is even more complicated.

In the automobile sector, the new 25% import tariff on cars and auto parts, which came into effect from April 2, is likely to affect US-bound exports of Tata Motors and Bharat Forge. Tata Motors will be less hit, given its US manufacturing plant.