US and India Agree Trade Deal – Here Are The Details

• Trump said that India has agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela. 
• Trump said Indian Prime Minister Narendra Modi and himself spoke about many things, including trade, and ending the War between Russia and Ukraine.
• The prolonged deal comes after India signed a major free trade trade agreement with the European Union, which Modi touted as ‘mother of all deals’. 
   

U.S. President Donald Trump on Monday announced that the U.S. and India have agreed to a trade deal under which the U.S. will charge a reduced reciprocal tariff, lowering it from previous levels of 25% to 18%.

“Out of friendship and respect for Prime Minister Modi and, as per his request, effective immediately, we agreed to a Trade Deal between the United States and India, whereby the United States will charge a reduced Reciprocal Tariff, lowering it from 25% to 18%,” Trump said in a post on Truth Social. 

“They (India) will likewise move forward to reduce their Tariffs and Non Tariff Barriers against the United States, to ZERO,” Trump further added. 

Trump said Indian Prime Minister Narendra Modi and himself spoke about many things, including trade, and ending the War between Russia and Ukraine.

More Details

Trump said that India has agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela. 

In August, Trump slapped an additional 25% tariff on India in response to Russian oil purchases on top of the 25% “reciprocal” levy on the country’s U.S.-bound goods that had taken effect earlier the same month.

Trump further added that India has also committed to “BUY AMERICAN,” at a much higher level, in addition to over $500 billion of U.S. Energy, Technology, Agricultural, Coal, and many other products. 

The prolonged deal comes after India signed a major free trade trade agreement with the European Union, which Modi touted as ‘mother of all deals’. 

Prolonged Deal

Trade talks between the Trump and Modi administrations had appeared to have stalled last year due to a number of sticking points, including New Delhi’s continued reliance on Russian oil. 

While Trump and Modi have shared a cordial relationship in the past, the U.S. President's assertions about America’s role in ending the conflict between India and its neighbor have recently strained it. 

Market Reaction

U.S. equities rallied on Monday. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was up by 0.51%, the Invesco QQQ Trust ETF (QQQ) rose 0.82%, and the SPDR Dow Jones Industrial Average ETF Trust (DIA) jump 0.9%.

Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘bearish’ territory.

For updates and corrections, email newsroom[at]stocktwits[dot]com.
 

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