President Donald Trump announced a headline US–China tariff truce and teased a major US–India trade deal, sending global markets and Indian exporters surging on hopes of tariff relief and new opportunities.
After nearly three years of tit-for-tat tariffs—up to 45% on over $500 billion in goods—Trump said the U.S. "has just signed" a deal with China based on April's Geneva talks. The truce halts new tariffs while existing duties remain in place.
"We've reached a tremendous deal with China. No new tariffs, and we're looking at reducing some of the existing ones. This is great for American businesses and consumers." - President Trump
Key components of the US-China agreement include:
Immediately after the China news, Trump promised a "very big" deal with India. Focus areas include textiles ($40B exports), pharmaceuticals ($13B), and IT services ($150B) with potential for significant tariff cuts and regulatory streamlining.
Expected benefits for India include:
Currency markets showed immediate reaction with the rupee gaining 0.3% against the dollar, while commodity prices saw mixed movement as investors digested the trade implications.
The textile sector, contributing $40 billion to India's exports, stands to benefit significantly from reduced US tariffs. Major players like Welspun, Vardhman, and Arvind are expected to see increased orders.
Indian pharma companies supplying 40% of US generic drugs could see expedited regulatory approvals and market access improvements. Companies like Dr. Reddy's, Cipla, and Sun Pharma are positioned for growth.
IT giants like TCS, Infosys, and Wipro may benefit from enhanced visa policies and digital trade agreements, potentially adding $20 billion in additional revenue over three years.
The announcement signals a potential shift in global trade dynamics, with experts noting this could lead to:
Related developments in the region include ongoing diplomatic efforts in the Middle East and comprehensive business expansion across various sectors.
Despite the positive announcements, several challenges remain: