India and the European Union agreed to a massive trade deal on Tuesday, indicating that some countries are enhancing their economic cooperation while they confront tariff tensions with the U.S.
The India-EU agreement creates a free-trade zone of roughly 2 billion people and slashes tariffs on a full suite of goods, though some farm products were kept out of the deal to protect agricultural sectors on both sides.
European Commission President Ursula von der Leyen called it the “mother of all deals.”
“This is only the beginning. We will grow our strategic relationship to be even stronger,” she said on X. “Long live India. Long live the friendship between Europe and India.”
Indian Prime Minister Narendra Modi called it a significant milestone in relations between his country of over 1 billion people and the 27-nation European bloc.
“This agreement will deepen the economic ties, create new opportunities for our people, and strengthen the partnership between India and Europe for a future characterized by prosperity,” Mr. Modi said on social media.
The EU and India had been working toward a trade deal for two decades.
The agreement coincides with increasing trade friction between the U.S. and other countries as President Trump imposes tariffs to create revenue and leverage, reduce trade deficits and protect domestic industries.
Mr. Trump imposed a 50% tariff on Indian imports over New Delhi’s decision to import Russian oil. The administration said the imports funded Moscow’s war machine against Ukraine.
Mr. Trump and the EU recently tangled over possession of Greenland, placing their bilateral trade deal in doubt. However, the U.S. and NATO allies agreed to pursue a cooperative framework to access the Arctic island.
There are signs that some so-called middle powers are losing patience with large nations that dominate global diplomacy and economics.
During his speech last week at the World Economic Forum in Davos, Switzerland, Canadian Prime Minister Mark Carney urged midsize economies to work together.
“The middle powers must act together, because if we’re not at the table, we’re on the menu,” he said.
Mr. Carney recently pivoted away from the U.S. to strike a trade deal with China. Notably, it lets Chinese automakers send some of their electric vehicles to Canada at a low tariff rate.
Mr. Trump warned Canada on Saturday that he would impose a 100% tariff on Canadian goods if it implements the deal with China.
“If Governor Carney thinks he is going to make Canada a ‘Drop Off Port’ for China to send goods and products into the United States, he is sorely mistaken,” the president said.
The Washington Times reached out to the White House for comment on the EU-India trade deal.
• Tom Howell Jr. can be reached at thowell@washingtontimes.com.
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