US President Donald Trump’s latest update on India-US trade negotiations is expected to influence Indian stock market sentiment, as US tariffs on Indian goods have been one of the key reasons behind the subdued performance of Indian equities in recent months.
On Tuesday (US local time), Trump said that India and the US “are continuing negotiations to address the trade barriers between the two nations,” a statement that indicates a thaw in strained relations between New Delhi and Washington after the US President imposed a 50% tariff on Indian goods as punishment for New Delhi’s purchase of Russian oil.
Trump posted an update on India-US trade talks on Truth Social: “I look forward to speaking with my very good friend, Prime Minister Modi, in the upcoming weeks. I feel certain that there will be no difficulty in coming to a successful conclusion for both of our great countries.”
Prime Minister Narendra Modi responded to Trump’s update on social platform X, highlighting India’s close ties with the US.
“India and the US are close friends and natural partners. I am confident that our trade negotiations will pave the way for unlocking the limitless potential of the India-US partnership. Our teams are working to conclude these discussions at the earliest. I am also looking forward to speaking with President Trump. We will work together to secure a brighter, more prosperous future for both our people,” PM Modi wrote on X.
What Trump’s latest update means for the Indian stock market
Trump’s signals on India-US trade negotiations have rekindled hopes of an early trade deal between the two nations and further strengthened expectations that the 25 per cent additional tariffs on Indian exports to the US can be abolished. This will be a huge relief for affected sectors such as textiles, gems and jewellery, certain food items, and electronics.
(This is a developing story. Please check back for fresh updates.)
