Geopolitics in the Background
The EU, India Free Trade Agreement arrives as both parties navigate a turbulent global trade environment shaped by U.S. tariffs imposed under President Donald Trump.
The EU recently reached a deal with Washington to cap most tariffs on European goods at 15%, though implementation stalled last week amid renewed tariff threats tied to a now-dormant U.S. push involving Greenland. Those threats were later withdrawn after a preliminary framework addressing U.S. security concerns, and EU officials said work on implementing the deal is expected to resume.
India, however, continues to face some of the steepest U.S. tariffs, totaling 50% on certain goods. Half stems from a national emergency declared by Trump under the International Emergency Economic Powers Act over India’s purchase of Russian oil, while the remainder is linked to a separate IEEPA action targeting persistent U.S. trade deficits.
The White House did not immediately respond to a request for comment on the agreement.
