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Will EU’s Big India Trade Deal Sideline US Tariffs?

ZamPointBy ZamPointJanuary 28, 2026Updated:January 28, 2026No Comments6 Mins Read
Deccan Chronicle
Will EU’s Big India Trade Deal Sideline US Tariffs?

The European Union’s prime leaders, for the primary time, have been the chief friends at India’s Republic Day celebrations on January 26. Ms Ursula von der Leyen is the president of the European Commission. Her organisation features because the EU’s govt department, proposing legal guidelines, managing insurance policies and imposing the European Union’s regulation. Accompanying her was Antonio Costa, the Indian-origin president of the European Council, which defines the EU’s general political course and priorities, bringing collectively the heads of state however with out having fun with any legislative energy. It handles high-level decision-making, together with the appointment of the president, Ursula von der Leyen. That explains why they have been collectively invited, as their coordination is critical to take ahead any essential new proposals. The timing of the go to is essential, contemplating the prevailing international surroundings, which was succinctly captured lately by Canadian Prime Minister Mark Carney in his Davos speech. He stated the worldwide order faces a “rupture”, brought on by US President Donald Trump’s disruptive strategy to international commerce, diplomacy and the rules-based worldwide system. India has borne the burden of fifty per cent tariffs on most Indian exports to the US. The menace of additional escalation lingers because of the US alleging India-Iran industrial ties, particularly oil imports. The India-US commerce deal has continued to get delayed, because the United States retains introducing new irritants. The EU additionally has entered a brand new unsure section after initially humouring President Donald Trump into approving a brand new commerce deal. The discord arose over President Trump’s declare on the Denmark-controlled huge landmass known as Greenland. Prior to his Davos journey, President Trump completely insisted on the US annexing Greenland, utilizing navy power if obligatory. The churn amongst the European Nato members was virtually instantaneous. They debated that use of navy power towards a Nato member would shatter the essential alliance. With the US markets plunging, the message was unmissable. Consequently President Trump, in his Davos speech, dominated out using navy power. However, the Europeans, thus far maintaining their considerations hidden, now started to significantly cope with the “rupture” within the international order. China had already demonstrated that solely a agency stance will get President Trump to climb down from aggressive and punitive positions. Canada additionally equally started realigning its commerce and overseas insurance policies. It concluded that until its dependence on the US market was diminished, Mr Trump was unlikely to cease claiming Canada because the 51st province of America. President Trump has a March summit forward scheduled with Chinese President Xi Jinping. The implicit US-China bipolarity globally leaves the center powers in Europe, Africa, Latin America, and so on exploring different choices. An apparent answer is the crafting of a “Third Pillar”. India and the European Union are the best core of such a coalition, if the endangered international order is to be protected. Otherwise, the strategic independence of even members of the G-7 bloc of developed nations, besides the United States, could get compromised. This is so as a result of President Trump makes use of tariffs not only for acquiring trade-related concessions but additionally for strategic dominance. The joint assertion after Tuesday sixteenth EU-India summit has 22 pages. European Council president Antonio Costa posted on X his studying of the summit. He wrote: “EU and India are committed to acting together as anchors of stability in an increasingly fragmented and multipolar world”. He additionally

described three core outcomes. One, the Free Trade Agreement, which Mr Costa describes as “offering partnerships instead of tariffs”. Ms Leyen calls it the “mother of all deals”. It definitely creates a brand new buying and selling bloc, overlaying a mixed inhabitants of two billion folks. The second consequence is a brand new “Security and Defence Partnership”. Against the backdrop of President Trump’s fixed deriding of Europeans for his or her low defence spending and over-dependence on America, the EU is ultimately transferring in direction of self-sustaining defences. It creates a great foundation for defence expertise sharing and co-development. Cooperation additionally covers maritime safety, defence trade, cyber and hybrid threats, house and counter- terrorism. The third consequence encompasses a Joint Comprehensive Strategic Agenda in direction of 2030. It covers vitality, connectivity (by way of sea, land and air) and mobility. The final pertains to migration and the motion of expert labour. With the anti-immigrant Make America Great Again (MAGA) concentrating on of largely non-white people, together with H-1B visa holders, Europe could be a extra welcoming vacation spot. The simplification of the Schengen visa regime is to be examined. Pilot European Legal Gateway Office is known as as an establishment to facilitate migration enquiries. Interestingly, many themes that the Trump administration has contemptuously sidelined are listed for motion. The significance of the Paris Agreement to deal with local weather change is restored. The goal to maintain international warming under 1. 5 levels Celsius above pre-industrial ranges is underscored. A activity power on Green Hydrogen and a Wind Business Summit are envisaged. An unlimited vary of topics are listed for cooperation. These, inter alia, are: provide chains for agrifoods and demanding minerals; vitality safety; good and sustainable urbanisation; industrial decarbonisation; house; and high- efficiency computing. The Free Trade Agreement stands accredited however can solely be signed after the EU completes legislative procedures. That could not occur earlier than the tip of 2026. Work can be to begin on an Investment Protection Agreement (IPA). The joint assertion additionally notes the 2 sides discussing ongoing conflicts and worldwide stand-offs. In Ukraine, “comprehensive, just and lasting peace” is endorsed, utilizing dialogue and diplomacy. The sanctity of the UN Charter and worldwide regulation is emphasised. Regarding Gaza, it shrewdly refers back to the UN Security Council Resolution 2803 of November 17, 2025, which recommended the Board of Peace and Stabilisation Force. However, the assertion seeks its implementation “in its entirety”. This is meant to include President Trump’s extra expansive interpretation, to make use of the board for international peacekeeping, which solely the UNSC is authorised to undertake. On the Iran subject, once more dialogue and diplomacy is suggested with out recommending any particular plan of action for avoiding navy confrontation. The EU-India summit could already be impacting America’s coverage in direction of India. US treasury secretary Scott Bessant hinted on the lifting of 25 per cent tariffs on India for purchasing Russian oil, whereas noting that their European allies have been signing a “big trade deal” with India. If this occurs it can corroborate the Chinese lesson that standing upright and politely pushing again would be the solely technique to trump as we speak’s America.

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