<h1>Draft US 25% import tariff tied to geopolitical threats sparks steep market sell-off, currency weakness, and sector losses</h1> A draft US order proposing an additional 25% tariff on imports from the country, effective 12:01 am EDT on Aug 27 and justified as linked to geopolitical threats, prompted a widespread domestic market sell-off: the benchmark index fell about 849 points to under 81,000, mid- and small-caps declined and sectoral losses hit realty, metals, banking and healthcare while FMCG outperformed. Persistent foreign institutional outflows, a weakening currency and rising oil prices compounded the decline. Market participants are watching potential domestic relief measures, including GST revisions and sectoral support, and the tariff's imminent implementation that targets goods entered for consumption on or after the stated effective time.