Societe Generale analyst Kunal Kundu notes that the US will reduce its tariffs on Indian goods to 18% from 50%, while India is expected to eliminate tariffs on US goods. However, India has not confirmed the zero-tariff access or the cessation of Russian oil purchases. The immediate tariff reduction is seen as a boost for Indian exporters, although the macroeconomic implications remain uncertain.
US tariff reduction impacts Indian exports
“The US will reduce its tariffs on Indian goods to 18% from the current 50% (including the punitive tariff of 25% for importing Russian crude) with immediate effect. India will reduce its tariff and non-tariff barriers on US goods to zero.”
“So far, India has only confirmed a tariff reduction, with no official confirmation of (i) zero‑tariff access for U.S. goods, (ii) cessation of Russian oil purchases, or (iii) a $500bn procurement commitment.”
“What is clear, however, is that the immediate reduction of U.S. tariffs on Indian exports to 18% provides a direct and timely boost for Indian exporters.”
“From a sentiment perspective, markets have also reacted positively, with tariff‑related uncertainty now largely behind them.”
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
Source: https://www.fxstreet.com/news/india-us-trade-deal-clarity-needed-societe-generale-202602031708
