Trump Tariffs Ease as U.S.-India Trade Deal Sparks Crypto Rebound

Trump confirms U.S.–India trade deal, cuts tariffs to 18%, and crypto markets rebound as Bitcoin and major tokens rise.

Trump Tariffs eased after the United States and India reached a trade agreement, and crypto markets reacted with a sharp rebound.

The announcement reduced near-term trade tension, and it also improved sentiment across risk assets, including Bitcoin and major tokens.

U.S.-India Trade Deal Lowers Tariff Pressure

President Donald Trump confirmed that the United States finalized a trade deal with India after talks with Prime Minister Narendra Modi.

He announced the agreement through a public post, and the change took effect immediately.

Under the deal, U.S. reciprocal tariffs on Indian goods were reduced to 18% from 25%.

India also agreed to remove tariffs and non-tariff barriers on American goods, according to Trump’s statement.

Trump said India committed to increasing imports of U.S. products across several sectors.

These sectors include energy, technology, agriculture, and coal, and total purchases could exceed $500 billion over time.

Donald J. Trump Truth Social Post 11:58 AM EST 02.02.26

It was an Honor to speak with Prime Minister Modi, of India, this morning. He is one of my greatest friends and, a Powerful and Respected Leader of his Country. We spoke about many things, including Trade, and ending the…

— Commentary Donald J. Trump Posts From Truth Social (@TrumpDailyPosts) February 2, 2026

Energy supply featured prominently in the agreement, and Trump said India would halt purchases of Russian oil.

He added that India would increase energy imports from the United States and possibly Venezuela.

The agreement follows months of strained trade relations between the two countries.

In August, the United States imposed a 25% tariff on Indian goods, citing India’s oil trade with Russia.

Crypto Markets Rebound After Tariff Easing

Crypto prices rose shortly after news of the trade deal became public. Bitcoin increased by more than 2%, and Ethereum and other large tokens also moved higher.

The rebound followed a broader risk-on move across global markets. Investors reacted to reduced tariff pressure, and they showed more appetite for assets with higher risk.

Past tariff announcements from the Trump administration had triggered crypto sell-offs.

Traders often moved toward safer assets when trade tension increased and uncertainty grew.

Earlier tariff pauses, including those affecting European nations, also supported crypto prices.

Those suspensions removed near-term pressure and eased market concerns before their planned start dates.

**Related Reading:  **Major Cryptocurrencies Fall After Trump Signals New U.S. Tariffs

Trade Policy Remains a Key Market Driver

Analysts continue to monitor trade policy changes, as they influence short-term crypto price movements.

Tariff news often shapes sentiment, and it can lead to fast market reactions.

An analyst, Ashish Chaturvedi, wrote on X that “The India- US relationship has LIMITLESS POTENTIAL.” The comment reflected optimism around stronger trade ties and cooperation.

The relationship between India- US has LIMITLESS POTENTIAL. pic.twitter.com/PcrDhcLTvM

— Ashish Chaturvedi (@Ashish_4vedi) February 2, 2026

Despite the rebound, traders remain cautious, and tariff policy remains a headline risk.

Sudden changes can still affect volatility across crypto and other risk assets.

Markets continue to react to official statements and confirmed actions.

Investors now focus on whether the current trade stance will remain stable in the coming months.