Benchmark BSE Sensex tanked over 350 points while the NSE Nifty 50 lost 70 points in the early trade on Tuesday after US President Donald Trump said his proposed tariffs on Canada and Mexico would go into effect as planned.

The Sensex lost 0.45% to 72,753, while the Nifty fell 0.64% to 21,979. All 13 major sectors logged losses at the open, while the broader small- and mid-caps fell about 1% each.

The 30-share BSE benchmark had witnessed a see-saw trade on Monday and declined by 112 points or 0.15 per cent to close at 73,085 as 18 of its components advanced and 12 declined. The index opened higher but soon fell to the day’s low of 72,784 due to intense selling in large caps.

The Nifty had extended its losses to the ninth session and slipped 5.40 points or 0.02 per cent to settle at 22,119. The index slumped 120 points or 0.54 per cent to hit a low of 22,004 but later recovered most of the losses.

The effect of Trump’s tariffs was also seen in other Asian markets, with Tokyo and Hong Kong shares going down. The broader Topix index lost 1.48 per cent, while the benchmark Nikkei 225 index plunged 2.43 per cent.

The three major indexes in the US also sank after Trump’s comments. The Dow Jones Industrial Average ended the day down 649.67 points, or 1.48 per cent, the S&P 500 lost 104.78 points, or 1.76 per cent, and the Nasdaq Composite dropped 497.09 points, or 2.64 per cent.

Trump’s Tariffs

Donald Trump on Monday said that Canada and Mexico can’t avert his sweeping tariffs, due to come into effect on Tuesday. The 78-year-old Republican, who returned to power in January, had unveiled — and then paused — blanket tariffs on imports in February, accusing two of the US’ major trading partners of failing to stop illegal immigration and drug trafficking.

The duties stand to impact over $918 billion worth of US imports from Canada and Mexico.

Canada Prime Minister Justin Trudeau said he will slap tariffs on US imports beginning Tuesday in response to levies pledged by Trump.

“Canada will not let this unjustified decision go unanswered,” he said.

“Should American tariffs come into effect tonight, Canada will, effective 12:01 am EST tomorrow, respond with 25 percent tariffs against $155 billion of American goods,” he added.

Mexico’s Claudia Sheinbaum said her country has contingency plans, whatever decision Trump takes.

Trump on Monday also signed an order to increase a previously imposed 10 percent tariff on China to 20 percent. Beijing warned it would take countermeasures against the new levies to safeguard its own interests.

He has also threatened reciprocal tariffs on all US trading partners, including India.