Trump Cuts Tariffs – Could These 7 Stocks Explode Overnight?

Markets around the world have reacted to President Donald Trump’s latest announcement regarding a "Trump Tariff Cut" policy. This is the first US-Indian Trade Deal, and it is also a historic trade deal, as it cuts the reciprocal tariff rate from 50% to 18%. The deal also comes after several months of trade negotiations. This is only one of the many trade deals Trump has enacted to reduce our dependence on foreign energy sources and lower trade imbalances. 

From an investor’s perspective, what does this mean for you? As impulsive as this may sound, it could mean an extreme spike in price on certain equities from this "tariff news". You could literally make profits overnight. "Tariff Cut impact on stocks" is what Trade Analysts across the board are most curious about. This article is intended to analyse the details of the deal, the impact of these tariffs on the US-India trade, the impact of the tariff cuts on stocks, and the best 7 stocks to buy after these tariff cuts.

Trump Tariff Cut: Impact on Bilateral Trade

A tariff cut was announced in the White House fact sheet from February 2, 2026, which Trump details in the tariffs and trade section, and the Trump tariff cut news blip. An Executive Order by President Trump removing an additional 25% tariff on Indian imports was one of the reasons the US retaliated due to oil purchases by India from Russia. In turn, India will stop buying Russian oil and will buy more US energy products, and other things. The tariffs on India in the US’ trade war have been reduced to 18% starting February 7, 2026, on textiles, apparel, pharmaceuticals, machinery, and a few other things.

This is not a minor change; Trump tariffs cut news blip claims it is a pivot. Trump is confident the deal benefits both sides. The Indian parliament will have to approve a purchase of US agricultural products, among others. The US is expected to export an unprecedented amount to India. The American economy will gain new opportunities to earn revenue.

The deal also addresses a wider range of geopolitical issues. In addition to strengthening its position against Russia by forcing India to stop buying oil imports from Russia, the deal also strengthens diplomatic ties with India, the most populous country in the world. However, changes made to the White House fact sheet, such as omitting mentions of 'certain pulses' and 'commitment language,' indicate that they have made changes to address the concerns of the White House. Overall, the 'Trump tariff cuts' signify a positive change in relations between the US and India after an extended period of deteriorating relations due to increased tariffs and trade wars.

Opportunities and Challenges in US India Trade Impact

The US-India Trade Impact from the deal is numerous and complex. Bilateral trade between the US and India is currently over $190 billion each year, and the large trade tariffs have posed a significant barrier to that trade. Trade tariffs being lowered in the US will increase Indian exports to the US of textiles, pharmaceuticals, and, of course, a large volume of jewellery, which will result in improved performance of the Indian economy by reducing the effective trade tariffs from 50% to 18%. In India, the trade tariffs will have a positive impact by providing access to previously closed US markets, and those positive impacts will most notably be in the agriculture, energy, and technology sectors.

This plan may change how trade deficits operate. The US always has a trade deficit with India, but the US intends to purchase over $500 billion of products which would mean India would have to buy US products, which would lead to US industries receiving billions. There will be growth in the defence and aviation industries because of lower taxes on plane parts of planes and more collaboration opportunities. There will still be obstacles, like Trump's tariff implementation being up for consideration by the Supreme Court and India still protecting its agriculture.

These factors will change the US-India trade; India will buy less energy products from Russia, so US energy companies may gain more customers because India will need to fill that energy need. Investors will need to focus on the changing markets because other countries are likely to follow the US's trade strategy.

Impact of Tariff Cuts on the Indian Stock Market and the US: Rush by Investors

The impact of tariff cuts on the stock market is positive and immediate. Indian equity markets have increased in value, and, once their tariffs on close competitors (the US, New Zealand, Australia, and a few regions in Europe) have increased, their focus on defence, the gems and textiles industries, and the defence industry has increased. US export markets have shown the same positive and immediate growth. The optimistic outlook on trade impacts on the market in the US and the trade impacts on the market in the US have had a positive impact.

Historically, tariffs have positive impacts on trade and the economy by providing positive impacts on trade. Studies show that export tariffs in the US will increase income to the US by provocation. Tariff cuts on the US-Canada and the US-Mexico tariffs show stable (but volatile) impacts.

For investors, this stock news tariff presents an opportunity for investment as an increase in the benefits of earnings growth of an economic sector is possible with an increase in the benefits of tariff reductions on imports and exports. On the other hand, there is the potential for retribution from other trade partners, and the Supreme Court could decide to limit President Trump's tariff power. Tariff power could be an economic market risk. Most analysts remain positive, stating that gains will be realised for the economic sectors that will be impacted by the tariff reductions.

Seven Stocks to Watch: George Trump Just Cut Tariffs: Explosive Potential Overnight

Potentially, stocks to buy after tariff cuts as the Trump tariff cuts have the potential to open trade with other countries. These stock picks are focused on US companies that will be favoured by trade with India, less competition for exports, and the reconfiguration of supply chains. We have focused picks across the sub-sectors of agriculture, energy, technology, and industrials.

1. Archer-Daniels-Midland Company (ADM): As an agricultural processor, it is expected that ADM will benefit the most as India is expected to lower tariffs on certain agricultural products such as dried distillers' grains and soybean oil. Expectedly with the opening market of India, the exports for ADM will increase significantly, optimistically with a predicted 10-15% increase in revenue in the next few quarters.

2. Bunge Global SA (BG): Oilseed processing is the company's specialty, and Bunge stands to profit from tariffs on soybean oil and associated agricultural products. The brisk $500 billion buy commitment is likely to translate to significant orders, making BG one of the top tariff news stocks to keep an eye on for quick profits.

3. Constellation Brands, Inc. (STZ): India's concessions on wines and spirits mean that STZ's collection of high-end drinks stands to have increased access to the market. Here, STZ is well-placed to benefit from the predicted 20 percent increase in international sales.

4. Boeing Company (BA): The contract has tariff reductions, and the country (India) is experiencing an aviation boom. This means that Boeing should expect an increase in orders from Indian carriers, leading to billions added to the backlog and an immediate increase in stock prices.

5. General Electric Company (GE): GE’s machinery and energy products will have fewer restrictions when entering the market in India. With GE poised to capitalise on energy, the company stands to secure contracts for power generation technology; thus, GE is a strong consideration among stocks to buy after tariff cut posts.

6. Apple Inc. (AAPL): With the reduction of tariffs in information and communication technology, Apple's ability to market to India's masses will have unprecedented possibilities. The increased price accessibility will likely stimulate a 100 percent increase in iPhone sales, thereby propelling the company's share prices to record levels.

7. Exxon Mobil Corporation (XOM): With India transitioning from Russian oil to US energy products, XOM has emerged as a beneficiary. Exxon's status as one of the most prominent oil exporters places it on the frontline of the $500 billion commitment. This scenario indicates potential substantial earnings growth and increased stock value daily.

These stocks to buy after tariff cuts were selected because deals like these tend to impact stocks that are closely related to the provisions of these deals. A reminder to do your due diligence, though Often, the market will react suddenly for better or worse.

Conclusion: Positioning for the Post-Tariff Boom

The tariffs that Trump has issued with regard to India are going to change the landscape of global trading; the primary impacts of US-India trade will be on energy security, supply chains, and economic growth. Out of the seven stocks to buy after tariff cuts, ADM, BG, STZ, BA, GE, AAPL, and XOM, are actually going to see increases in trade flow and will potentially experience significant growth.

There is still more to come from these deals and the Supreme Court; however, the tariffs on the deals are the only positive. The optimism is favourable for the market and presents an opportunity to investors. In the meantime, keep your eyes on the news and consider adjusting your investments to be more focused on the positive.

DISCLAIMER: This blog is NOT any buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always consult your eligible financial advisor for investment-related decisions.