India Trade Deal Lowers Tariffs 18%

Trump and Modi Announce New US-India Trade Deal

• The US has reduced its reciprocal tariff on Indian goods from 25% to 18%, effective immediately.
• Prime Minister Narendra Modi confirmed the agreement, pledging to increase imports of US energy, agriculture, and technology products.
• The deal includes a commitment from India to halt purchases of Russian oil and shift towards US and potentially Venezuelan energy sources.
• The agreement is expected to unlock over $500 billion in future US exports.
• US equities responded positively, with the S&P 500 rising 0.7% and the Nasdaq climbing nearly 0.8%.
• Traditional safe-haven assets like gold and silver fell sharply as investor risk appetite increased.

This new trade deal between the US and India lowers tariffs on Indian goods to 18% and is projected to facilitate over $500 billion in future US exports, boosting investor confidence as reflected in rising equity markets.