Trump’s trade war speeded up historic India-EU free trade pact: Western media | India News

NEW DELHI: According to reports in Western media, the tariff turmoil unleashed by US President Donald Trump as part of his “America First” trade policy was a major factor in accelerating the newly signed historic free trade agreement between India and the European Union. “The agreement, finalized after nearly two decades of on-again, off-again negotiations, unites the world’s two largest markets in a free trade area home to nearly two billion people, accounting for roughly a quarter of global GDP,” a report in America’s Newsweek said. The statement was included.

Experts told Newsweek that the 25-50 percent US tariffs on steel, aluminum and other Indian exports and the collapse of US-India trade talks last year have pushed New Delhi to hedge its bets.

Meanwhile, European allies felt the strain of transatlantic disputes; Trump even threatened to impose tariffs over Europe’s refusal to sell Greenland. “Trump’s tariffs have given us a headwind across the country,” an EU diplomat told Newsweek, suggesting that fears of US trade wars have helped India and the EU overcome their ultimate sticking points.

European Council President Antonio Costa framed the agreement as a direct counter to Washington’s tariff wars. He praised it as a “geopolitical equalizer” that supported an international, rules-based trading order in an age of unilateralism.

“The deal therefore stands as a reaction to the new US trade policy: Rather than follow Washington towards protectionism, Brussels and New Delhi have chosen to sign the largest free trade agreement they have ever signed, underscoring that the global economy will not wait,” the report said. The statement was included.

Likewise, experts in New Delhi believe the partnership aims to create a counterbalance to China’s influence. Both India and the EU have become wary of China’s near-monopoly in critical supply chains and expansionism in Asia.

European Commission President Ursula von der Leyen said, “We will grow our strategic relationship by making it even stronger,” and emphasized that moving away from single sources is the main motivation.

The new agreement includes the first India-EU Security and Defense Partnership (SDP), a parallel agreement signed alongside the trade agreement.

This “comprehensive” security framework will deepen cooperation in maritime security, defense technology, cybersecurity, space and counterterrorism, among other areas.

The deal also paves the way for European companies to shift some production in key areas such as batteries or specialty chemicals to India without fear of Chinese components sneaking in to undermine customs benefits, the report said.

“The announcement of the agreement served as a powerful stepping stone for the leaders who made it happen. Indian Prime Minister Narendra Modi hailed this FTA as the ‘largest free trade agreement in history’, underlining its scale and importance. From farmers and small businesses gaining export access to consumers enjoying cheaper goods, Modi emphasized how the agreement will benefit ordinary Indians, thus cementing India’s image as a leader that can elevate its global economic standing,” the report said.