India is working hard to finalize a trade deal with the U.S. and is offering a rare “forward most-favored-nation” clause in order to sweeten the agreement, according to Reuters. This would ensure that if India later gives better tariff terms to any other country, the U.S. would automatically get the same deal. Indian officials said this would “future-proof” the agreement. Interestingly, talks have been moving faster compared to negotiations with other partners like China, Canada, and the EU, and Treasury Secretary Scott Bessent even said that India could be one of the first to sign a deal, possibly within weeks.
India wants to avoid the steep 26% tariffs proposed by President Trump and is willing to offer better terms to the U.S. than it would to Britain or the EU. In exchange, India is looking for assurances that it can replace Chinese suppliers in the U.S. market, especially for goods like textiles, toys, leather, furniture, and auto parts. India has already offered to cut tariffs to between 0% and 5% on many American agricultural products like meat, poultry, and fruits, which are currently taxed at 30% to 100%. However, sensitive items like soybeans and military equipment will be discussed in a second phase of talks.
It is worth noting that out of 24 categories of goods traded between the two nations, 19 have been picked for fast-track negotiations. India says it is ready to immediately lower tariffs on about 90% of its tariff lines and phase in the rest. New Delhi is also asking for long-term U.S. commitments to favor Indian pharmaceuticals and industrial equipment as part of a strategy to embed Indian firms into U.S. supply chains.
Is SPY a Buy Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on the SPDR S&P 500 ETF Trust (SPY) based on 407 Buys, 90 Holds, and seven Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average SPY price target of $654.23 per share implies 18.5% upside potential.
