India: US cuts tariffs on India – DBS

💡 DMK Insight

The US-India trade deal is a game changer for traders focused on commodities and emerging markets. Reducing tariffs on Indian goods from 25% to 18% could boost Indian exports significantly, impacting sectors like textiles and pharmaceuticals. This is especially relevant as India is a major player in these industries. Traders should keep an eye on how this affects the Indian Rupee (INR) against the US Dollar (USD), particularly if the INR strengthens as a result. Additionally, the deal’s condition on reducing oil purchases from Russia could lead to volatility in oil prices, especially if India shifts its sourcing strategies. Watch for fluctuations in crude oil prices and how they correlate with the INR, as this could create trading opportunities. However, there’s a flip side: if India struggles to meet the oil purchase conditions, the trade deal could unravel, leading to a potential spike in tariffs again. This uncertainty could create a risk-off sentiment in the markets. Keep an eye on news regarding India’s oil imports and any shifts in trade dynamics. For now, monitor the INR/USD pair closely, especially around key economic releases and geopolitical developments.