Trump Tariffs: Will US–India Trade Deal Boost Crypto Market?

The crypto market has seen a significant recovery from its severe crash following the US-India trade deal. As the US President Donald Trump has loosened his tax policies on Indian goods, crypto prices are witnessing a renewed positive momentum. However, experts have warned that Bitcoin is in a bear market, which puts market at risk of still seeing lower prices in the coming months.

Breaking Down the New US–India Trade Agreement

Offering a breather during a period of rising geopolitical tensions, US President Donald Trump announced an interim trade agreement with India to strengthen economic ties. After months of negotiations, the countries have agreed to the US-India trade deal, with Trump lowering the previous 50% tariffs. From today, Indian goods shipped to America will only be charged an 18% reciprocal tariff. The White House statement read,

“The United States of America (United States) and India are pleased to announce that they have reached a framework for an Interim Agreement regarding reciprocal and mutually beneficial trade (Interim Agreement). Today’s framework reaffirms the countries’ commitment to the broader U.S.-India Bilateral Trade Agreement (BTA) negotiations, launched by President Donald J. Trump and Prime Minister Narendra Modi on February 13, 2025, which will include additional market access commitments and support more resilient supply chains.”

As CoinGape reported, Trump confirmed the deal earlier this week. The statement also shed light on a fresh discussion on the Bilateral Trade Agreement. While both countries agreed last year to work toward the pact, it went unrealized as Indian PM Narendra Modi refused to open its agricultural market. 

In addition, the US underscored the vision of the US-India trade deal. Both countries intend to strengthen their economic ties and improve security. The U.S. has also said it will consider India’s request to further reduce tariffs on Indian goods during these discussions. They aim to work closely on investment rules, export controls, and joint efforts to deal with unfair trade practices from other nations. They will also support innovation and long-term cooperation.

India to Boost Purchases and Tech Trade with the US

Reports also state that India is planning to buy nearly $500 billion worth of goods from the US over the next five years. This decision comes in response to the US-India trade deal, as Trump lowered the tariffs. India intends to purchase energy supplies, aircraft and parts, precious metals, technology products, and more.

PM Modi views this US-India trade deal as a major step towards strengthening economic ties. He stated,

“Great news for India and USA!…This framework reflects the growing depth, trust and dynamism of our partnership. It strengthens ‘Make in India’ by opening new opportunities for India’s hardworking farmers, entrepreneurs, MSMEs, StartUp innovators, fishermen and more. It will generate large-scale employment for women and youngsters.”

Crypto Market Recovers: Is a Rally Ahead?

In response to the US-India trade deal, the crypto market has significantly recovered from its largest crash. The crypto market cap is up over 2% today, rising to $2.3 trillion, sparking new waves of optimism about a potential rally.

Top cryptocurrencies like Bitcoin, Ethereum, and XRP have seen notable upticks over the past 24 hours. Bitcoin, which slipped to a low of $60,000, managed to surge past $70,000 today. Ethereum, after nearly touching a low of $1,500, surged to the $2,000 level. As CoinGape reported earlier today, experts are not sure about when this crypto winter will end. 

Experts such as veteran trader Peter Brandt have also indicated that the crypto market could suffer further downside based on their belief that Bitcoin is in a bear market. Brandt predicted that the leading crypto could drop to as low as $42,000, which puts other crypto assets at risk.