TLDR

The US and India are close to reaching a trade agreement within the next ten days.
The agreement may lower the 26 percent Trump Tariffs imposed on Indian goods last month.
The US could impose a 10% tariff on Indian imports while exempting select products from duties.
The Trump Tariffs have increased market volatility and prompted urgent negotiations with key trading partners.
Bitcoin dropped sharply after Trump announced a 50% tariff on EU goods starting June 1.

Trade tensions escalated further as the Trump Tariffs prompted the US and India to accelerate talks toward a potential deal. A breakthrough could reduce the 26% tariff burden on Indian exports, easing market concerns. This development follows recent volatility triggered by US tariff announcements targeting multiple regions.

Partial Relief for Indian Goods Amid Trump Tariffs

India and the US are reportedly nearing an initial trade agreement that may lower tariffs within the next ten days. Sources suggest the deal will offer limited relief, potentially removing the 26% Trump Tariffs on some Indian goods. In return, the US may introduce a 10% tariff on other imports while excluding specific product categories.

Talks progressed after the Trump Tariffs disrupted existing trade flows, prompting diplomatic engagement from both sides. The two nations have continued negotiations to stabilize bilateral trade and maintain essential supply chains. Officials from both countries emphasized the need to finalize the agreement within the current 90-day window.

The US is willing to provide tariff exemptions for select Indian products under the Trump Tariff framework. However, both countries must still resolve differences in agricultural exports and technology transfer. Progress remains steady, and negotiators aim to avoid further escalation that could disrupt broader economic relations.

Market Reacts as US and India Seek Common Ground

The global crypto market responded strongly to the possibility of reduced trade tensions linked to the Trump Tariffs. Earlier this month, Bitcoin surged after the US and China agreed to a limited trade pact. Similar optimism surrounds the potential US-India agreement, which could stabilize sentiment across digital assets.

Following President Trump’s tariff comments targeting the EU, the crypto market saw sharp intraday losses. Bitcoin dropped from $111,900 to $108,000, highlighting the sensitivity to trade news. While EU relations remain strained, the US-India discussions have introduced a more positive market narrative.

Treasury Secretary Scott Bessent confirmed progress in trade talks with India and other Asian economies. He noted that multiple agreements could be completed during the 90-day pause in Trump Tariffs. The market continues to reflect the impact of these geopolitical developments on digital and traditional assets.

EU Faces Higher Duties While India Moves Forward

President Trump proposed a 50% tariff on EU goods, increasing trade pressure on the European Union. He cited difficulty in negotiations, leading to frustration over the EU’s trade stance under the Trump Tariffs policy. US officials indicated that talks with the EU have reached an impasse.

In contrast, the US is pursuing structured negotiations with India to finalize tariff adjustments. The White House seeks to secure fairer terms without further inflaming tensions in Asian markets.

Apple also entered the spotlight after Trump warned the company about a potential 25% import tax. However, CNBC reported that Apple’s US-based manufacturing would remain unaffected by the Trump Tariffs. Still, the move emphasized the administration’s commitment to pressuring firms to shift production domestically.

 

The post Trump Tariffs: Bitcoin Falls as EU Faces 50% Tax and Talks Stall appeared first on CoinCentral.

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Filed under: News - @ May 24, 2025 3:17 pm