Trump's Entry Reshapes Global Trade: India Becomes Western Supply Chain Hub

• Donald Trump announced a reduction in US tariffs on Indian goods from 25% to 18% via Truth Social, also claiming India would cease Russian oil purchases and buy over $500 billion in US products.
• The announcement lacked an official press release, leading market experts to analyze the deal based solely on Trump's social media post.
• Analysts like Terry Haines view this deal as a strong US response to Europe's trade advancements, integrating national security and economic strategy.
• Farwa Aamer and Arpit Chaturvedi suggest the India-Europe FTA pressured the US to finalize its own trade talks, with the US deal holding significant strategic importance for India's role in Western supply chains.
• While PM Modi confirmed the 18% tariff on 'Made in India' products, economists like Samiran Chakraborty note ambiguities regarding Russian oil purchases and India's tariff reductions.

Why It Matters: Trump's tariff reduction announcement positions India as a key Western supply chain partner, though details remain unclear.