US and India Reach Trade Deal After India Agrees to Stop Russian Oil Purchases
The United States and India reached a trade agreement after a phone call between US President Donald Trump and Indian Prime Minister Narendra Modi, according to Trump. The deal involves the US lowering tariffs on goods from India from 25% to 18%, in exchange for India reducing trade barriers to zero and ceasing to purchase Russian oil, Trump announced on Truth Social. An additional 25% tariff penalty imposed on Delhi for its refusal to stop buying oil from Russia will be dropped. Trump stated that India agreed to purchase over $500 billion worth of US goods.
The announcement came less than a week after India and the European Union revealed a landmark trade deal that capped nearly two decades of intermittent negotiations. Modi said on X that he is "del".
In other economic news, gold and silver prices experienced a significant drop after reaching record highs in January. Spot gold recorded its sharpest one-day drop since 1983, falling more than 9%, while silver plunged 27% before slightly recovering on Monday, according to BBC Business. The price surge in precious metals earlier in the year was attributed to investors seeking "safe haven" assets amid geopolitical uncertainties. However, prices fell after Kevin Warsh was nominated to lead the US Federal Reserve.
Despite the fall in gold and silver prices, the FTSE 100 index hit a record high, closing up 1.2% at 10,341.56 points, a record close, and a new intraday high.
Meanwhile, in Brussels, European Commissioner for finance Valdis Dombrovskis indicated that the European Union is open to discussing closer trade ties with the UK, including the possibility of a customs union. Speaking after meetings with UK ministers, including Chancellor Rachel Reeves, Dombrovskis stated that the bloc was "ready to engage" if the UK wanted to explore the move. He also suggested that Britain and the EU could remove "most" food checks between them.
A study by the Geneva Academy of International Humanitarian Law and Human Rights found that international law meant to limit the effects of war is at breaking point. The report, covering 23 conflicts over the last 18 months, concluded that more than 100,000 civilians have been killed, while torture and rape are committed with near impunity.
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