The European Union and India made a big announcement on Tuesday about a major trade agreement. This deal is expected to double the exports to New Delhi. Although this agreement took 20 years to create, the return of US President Donald Trump made it urgent to finalize it. During a shared press event in New Delhi with European Commission President Ursula von der Leyen and European Council President Antonio Costa, Prime Minister Narendra Modi stated that the EU partnership "will boost stability in the international system" during a time of "chaos in the global situation. " The India-EU trade agreement will account for a quarter of the world's economic activity and one-third of international trade, offering chances for India's 1.4 billion citizens and many people in Europe. This deal will start being put into action within a year after legal checks.
This agreement comes as Trump imposes 50 percent tariffs on products from India and following a delay in the US-India trade deal, while Europe is striving to lessen its reliance on the US and China and strengthen its relationships with other areas. An audio recording of Senator Ted Cruz showed him openly criticizing Vice President JD Vance and occasionally Trump for being unwilling to finalize a trade deal with India. While Trump has not yet responded to the "mother of all deals" between India and the EU, US Treasury Secretary Scott Bessent has already expressed disapproval, claiming it indirectly supports the Russia-Ukraine conflict. He mentioned, "We have enforced 25% tariffs on India for purchasing Russian oil. Guess what happened last week? The Europeans finalized a trade agreement with India," Bessent told ABC News.
The United States has expressed concerns that Europe is funding a "war" against itself by agreeing to this major trade deal with India. Bessent pointed out that while Europe may have reduced direct energy connections with Moscow, they are unintentionally fueling the Russia-Ukraine conflict by buying Russian oil products that are refined in India, even as Washington targets New Delhi with tariffs. Bessent portrayed the situation as an unequal sacrifice between the US and its partners. He claimed that while Washington seeks to disrupt Moscow's energy commerce, Europe continues to benefit financially from loopholes in the global oil market. Canada's Minister of Energy and Natural Resources, Tim Hodgson, hinted at a criticism of Trump and said India’s free trade agreement with the EU is a "perfect" response to global powers that use tariffs and economic means as tools to exert control. The long-awaited free trade agreement is anticipated to greatly enhance the engagement between the two areas, as it will create new possibilities for collaboration in various fields.
