On February 13, 2025, U.S. President Donald Trump met with Indian Prime Minister Narendra Modi in Washington, marking a significant moment in international relations.
Recently, India and the European Union announced a major trade deal aimed at reducing or eliminating tariffs on over 90% of goods exchanged between them. This pact, which has been in the works for almost twenty years, includes India lowering tariffs on agriculture and automobiles, two sectors that are sensitive politically.
This agreement comes as countries worldwide adapt their trade strategies, particularly in response to the U.S.’s strict tariffs under Trump. For example, Canadian Prime Minister Mark Carney recently visited China to strengthen economic ties, the first such visit in 17 years. UK Prime Minister Keir Starmer is also set to visit China for the first time since 2018.
The EU-India deal has been dubbed the “mother of all deals” by European Commission President Ursula von der Leyen, but it faces uncertainty due to Trump’s unpredictable stance. Recently, he imposed higher tariffs on Indian goods, which adds tension to the situation. U.S. Treasury Secretary Scott Bessent’s criticism of the EU for its agreement with India further complicates matters.
Despite this, there’s a silver lining. India is in advanced discussions with the U.S. for a trade agreement, according to India’s Minister of Petroleum and Natural Gas, Hardeep Singh Puri.
Investors are also watching the U.S. Federal Reserve closely, as it is expected to maintain current interest rates. Any comments from Chair Jerome Powell could shed light on the Fed’s future decisions amid political pressures.
On the economic front, the India-EU agreement will see India lower tariffs on European goods like automobiles and agricultural products, while the EU will do the same for Indian textiles, leather, and gems.
India ranks as the EU’s ninth-largest trading partner and accounts for 2.4% of the EU’s total trade. However, the EU stands as one of India’s largest partners, alongside the U.S. and China.
In today’s rapidly shifting economic landscape, strong trade agreements like the India-EU deal could reshape global supply chains and commercial ties.
For more details on international trade agreements and their implications, check the European Commission’s report on trade.
Source link
World Markets,Markets,India,Foreign policy,United States,Donald Trump,Ursula von der Leyen,Scott Bessent,Canada,Mark Carney,Keir Starmer,business news
