India Concedes in US Trade War
The US trade war continues to unfold, with recent developments showing some positive movement. Several countries are responding to President Trump’s tariffs, submitting proposals in an attempt to de-escalate tensions before the 90-day deadline.
India's Tariff Concession
India has proposed a "zero-for-zero" tariff on key goods with the US, including pharmaceuticals, auto parts, and steel. This proposal, as reported by Bloomberg, is contingent on reciprocal action from the US. Trading volume is also a key factor in India’s negotiations.
President Trump’s 90-day pause on tariffs, announced on April 9th, ends July 8th, 2025. While this deadline is some time away, international negotiations often require extensive time, prompting countries to proactively engage.
Malaysia is also pursuing a zero-tariff agreement with the United States. However, Malaysia has adjusted its economic growth forecast, acknowledging the negative impact of trade uncertainty.
Many countries are actively working towards agreements with the US to stabilize global markets.
Impact on Global Markets
The trade war’s impact on global stock markets has been significant. Uncertainty surrounding the Trump tariff negotiations has led to considerable market declines.
At the time of writing, the S&P 500 is down 0.29% to 5,670.41. The Nasdaq Composite dropped 0.42% to 17,901.96, and the Dow Jones Industrial Average fell 14.71 points to 41,302.72.
Investor uncertainty is evident in the cryptocurrency market as well. Bitcoin’s price is down 1.21% in 24 hours, trading at $94,441.46. President Trump’s indication of potentially lower tariffs on China has increased broader market expectations.
China’s actions are a key indicator of progress in US-China trade relations. After previous reciprocal tariff increases, global inflation remains a concern. China’s recent waiver of tariffs on US ethane imports is a positive sign that could shift the overall negotiating dynamic. Market analysts are closely monitoring the situation.
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