U.S. And India Reach Trade Deal, Crypto Market Recovers

Trump Tariffs headlines drove risk assets higher on Monday after the United States and India reached a trade deal. President Donald Trump confirmed the agreement following a call with Indian Prime Minister Narendra Modi, a development that coincided with an uptick in digital asset markets.

Trump Tariffs Roll Back Following US–India Agreement

Trump wrote in the TruthSocial post that the deal would usher in an immediate drop to 18% from 25% on US reciprocal tariffs on Indian goods. The amendment is effective immediately. India, in turn, will reduce its tariffs and non-tariff barriers for American goods to zero as well, the statement said.

As part of that agreement, Modi also pledged to substantially increase imports of American products. Trump said those purchases would be in areas such as energy, technology, agriculture, and coal. The overall value of those commitments could rise to more than $500 billion over time, he added.

Energy supply was also a key part of the talks. Trump said Modi had agreed to halt purchases of Russian oil. India will seek to boost energy imports from the United States and, possibly, increase purchases from Venezuela.

As CoinGape reported, trade tensions between the two mounted in August, with the US imposing a 25% tariff on Indian goods. The action was tied to India’s oil purchases from Russia. That came on top of an existing 25% tit-for-tat tariff also launched that same month.

Crypto Markets Rally on Easing Trade Tensions

Crypto markets reacted quickly to the news. Bitcoin price rose 2.15% immediately following the announcement. Ethereum and other large tokens also gained, lifted by broader risk-on trading.

A change in Trump Tariffs policy was an important contributor to the rebound. Months of rising tariffs have weighed on risk assets, with digital currencies mirroring losses in other risky assets such as stocks and broadermarkets. Tariffs announced by Trump in the past had led to sell-offs in cryptocurrencies as traders sought out safer assets in the face of increased trade uncertainty.

Previous threats of new tariffs have prompted heavy sell-offs, with Bitcoin and other major tokens under pressure as investors shifted to risk-off trading. AS CoinGape reported, the US earlier suspended planned tariffs on a number of European nations. Those actions had been set to go into effect on Feb. 1.

Analysts emphasized that the evolution of Trump Tariffs policy continues to be a significant headline risk for crypto. However, in an X post, analyst Ashish Chaturvedi wrote that “The India- US relationship has LIMITLESS POTENTIAL.”