US Tariffs Shake Global Markets; India Expands REIT Access

In a significant move that has sent ripples through the global financial landscape, President Donald Trump signed an executive order on August 1, 2025, imposing new tariffs ranging from 10% to 41% on imports from various countries. This decision has introduced a fresh wave of uncertainty and volatility in international markets.

U.S. Tariffs Trigger Global Market Turmoil

The newly announced tariffs have been applied to a broad spectrum of trading partners: India faces a 25% tariff, Taiwan 20%, South Africa 30%, and Canadian tariffs have been increased from 25% to 35%. These measures have led to a sharp decline in stock futures across Asian, U.S., and European markets, reflecting investor anxiety over escalating global trade tensions. Analysts have expressed concerns that these tariffs could disrupt supply chains, hinder global trade, and introduce fragmentation into business planning. Economists warn of potential negative impacts on global growth, emphasizing that in such a protectionist trade environment, there are “no real winners.” Market reactions have been cautious, with some investors anticipating possible negotiations or adjustments to the tariff levels in the near future. Source

India Proposes Expansion of Institutional Investment in REITs and InvITs

Amidst the global market upheaval, India’s Securities and Exchange Board (SEBI) has proposed expanding the scope of strategic investors in Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). The proposal aims to include a broader range of institutional investors, such as foreign investors and qualified institutional buyers, to invest as strategic investors. This initiative seeks to boost capital inflows into the real estate and infrastructure sectors. Currently, strategic investors are required to invest between 5% and 25% of a total offering before it opens, but the existing definition excludes key institutions like public financial institutions, insurance funds, provident, and pension funds. SEBI’s consultation paper suggests that certain types of foreign investors—excluding individuals, body corporates, and family offices—can be eligible as strategic investors. Public feedback on the proposal is being accepted until August 22. Source

Market Reactions and Investor Sentiment

The juxtaposition of these developments underscores the complex dynamics at play in the global investment landscape. While the U.S. tariffs have introduced a layer of uncertainty, leading to market volatility and cautious investor sentiment, India’s proactive measures to attract institutional investment into its real estate and infrastructure sectors highlight a strategic approach to bolstering economic growth. Investors are advised to monitor these developments closely, as the interplay between protectionist policies and investment-friendly initiatives will likely shape market trajectories in the coming months.

In conclusion, the global investment environment is currently characterized by a mix of protectionist trade policies and efforts to attract institutional capital. Navigating this landscape requires a nuanced understanding of geopolitical developments and regulatory changes, emphasizing the importance of staying informed and adaptable in investment strategies.