India: US cuts tariffs on India – DBS
|DBS Group Research report, authored by Radhika Rao, notes that the US and India have agreed on a trade deal, reducing tariffs on Indian goods from 25% to 18%. This agreement is contingent on India's continued reduction of oil purchases from Russia. The deal is expected to positively impact India's exports and financial markets, with a relief rally anticipated in domestic markets following the announcement.
US lowers tariffs on Indian goods
"US President Trump announced overnight that US and India had agreed on a trade deal, under which reciprocal tariffs on India will be lowered to 18% from 25% earlier. There was no explicit mention of how the additional punitive tariff of 25% (due to Russian oil purchases) will be treated, although US Ambassador to India Sergia Gor said in press comments, that the final tariff rate will stand at 18% (vs 50% earlier)."
"This effectively takes India’s tariff close to most of the ASEAN countries and puts it at an advantageous position vs China. India’s goods exports to the US stood at $86.5bn in FY25 and imports at $46bn (~6.7% share in total imports)."
"At the onset, this breakthrough is unmistakably positive for the real economy/ exports, sentiments as well as financial markets, while further details are awaited."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.