India–US Trade Deal: Clarity needed – Societe Generale

💡 DMK Insight

The potential tariff reduction between the US and India could reshape trade dynamics significantly. For traders, this news matters because it signals a shift in economic relations that could impact sectors like technology and agriculture, where both nations have substantial interests. A reduction from 50% to 18% in US tariffs on Indian goods could boost exports from India, potentially strengthening the Indian rupee against the dollar in the short term. However, the lack of confirmation on India’s zero-tariff access and ongoing Russian oil purchases introduces uncertainty. If India maintains its oil ties with Russia, it could face backlash from the US, complicating trade negotiations further. Traders should keep an eye on the Indian rupee’s performance against the dollar, especially if the rupee strengthens following tariff changes. Watch for any announcements from India regarding its tariff stance and oil purchases, as these could lead to volatility in related markets, including commodities and currencies. The next few weeks are crucial for gauging how these negotiations unfold and their impact on market sentiment.