U.S. Trade Policy and Tariffs

The historic India–EU free trade agreement, hailed by Ursula von der Leyen as the “mother of all deals” and by Prime Minister Modi as deepening ties between the two democracies, cuts Indian tariffs on imported EU autos from as high as 110% to 10%, reduces levies on EU wine, beer and olive oil, and opens easier EU market access for Indian farmers, small businesses and exporters in textiles, apparel, leather, footwear, gems and jewelry, handicrafts and engineering goods. Observers say the breakthrough — coming as EU–India trade (~$137 billion in 2024–25) now slightly exceeds U.S.–India trade (~$132 billion) — is accelerated by the unpredictability and cost of doing business with the U.S. under Trump’s tariffs and reflects a broader global rush to bilateral deals, including moves by the U.K. toward China.