Congress blames PM Modi for 'tariffying' market crash, draws parallel with Trump over economic policies

The Congress on Monday took a jibe at Prime Minister Narendra Modi following a sharp crash in the stock market, comparing him to former US President Donald Trump and accusing both leaders of delivering "self-inflicted wounds" to their respective economies. The party remarked that the markets were reacting in a predictably "tariffying" manner.

Stock market benchmark indices plummeted in early trade on Monday, tracking a global selloff triggered by Trump's tariff hikes and China’s retaliatory measures, stoking fears of a full-blown trade war that could hamper global economic growth.

The BSE Sensex nosedived 3,939.68 points, or 5.22%, to 71,425.01, while the NSE Nifty sank 1,160.8 points, or 5.06%, to 21,743.65.

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In a post on X, Congress general secretary in-charge communications Jairam Ramesh said, "It is no wonder that Mr. Modi and Mr. Trump describe themselves as good friends. Both are experts in giving their economies self-inflicted wounds."

"November 8, 2016 was demonetisation. April 2, 2025 was the bizarre reciprocal tariffs. Markets are reacting predictably in a tariffying manner," Ramesh said.

All Sensex-listed companies were trading in the red, with Tata Steel leading the slump with a fall of over 8 per cent, followed by Tata Motors, which dropped more than 7 per cent. Other major losers included HCL Technologies, Tech Mahindra, Infosys, Larsen & Toubro, Tata Consultancy Services, and Reliance Industries.

Asian markets also witnessed a bloodbath. Hong Kong’s Hang Seng index tanked nearly 11 per cent, Japan’s Nikkei 225 plunged almost 7 per cent, Shanghai’s SSE Composite dropped over 6 per cent, and South Korea’s Kospi fell by 5 per cent.

US markets had closed sharply lower on Friday as well. The S&P 500 crashed 5.97 per cent, the Nasdaq Composite slipped 5.82 per cent, and the Dow Jones Industrial Average tumbled 5.50 per cent.