India’s Exchange Traded Fund (ETF) continued its downward trend for the sixth consecutive week, reflecting growing investor concerns over potential U.S. trade tariffs and rising global uncertainty.

The drop comes in the wake of mounting pressure from the United States, where recent political remarks—especially from former President Donald Trump—have raised the possibility of new trade barriers targeting India. His criticism of India’s oil imports from Russia and hints at imposing higher tariffs have spooked some foreign investors.

As a result, there has been a noticeable pullback from Indian ETFs, especially from institutional investors who fear retaliatory actions or policy shifts that could affect long-term returns. While no official policy change has been announced yet, the uncertainty has been enough to rattle the market.

Analysts believe this decline isn’t solely due to U.S. pressure. Global market volatility, a strong U.S. dollar, and mixed domestic economic indicators have also played a role in weakening investor sentiment.

Financial experts are advising short-term investors to remain cautious and avoid aggressive buying until the situation stabilizes. However, long-term investors may view this dip as an opportunity to enter the market at more favorable valuations, depending on their risk appetite.

As of now, the Indian government has not issued an official response to the speculation around trade tension, but market watchers expect clarity in the coming weeks.

With the upcoming U.S. elections and shifting global trade dynamics, Indian markets—especially sectors exposed to exports—are likely to remain on edge.