economy

January 27, 2026

All eyes are on Trump's reaction to the 'mother of all deals' between India and the EU

The trade deal is being widely seen as a strategic hedge against volatile U.S. trade policies.

All eyes are on Trump's reaction to the 'mother of all deals' between India and the EU

TL;DR

  • The EU and India have agreed on a historic trade deal after almost 20 years of negotiations.
  • The deal aims to gradually cut tariffs to zero on the majority of imports between the EU and India.
  • The agreement is viewed as a strategic hedge against the U.S.' volatile trade policies and tariff threats.
  • U.S. Treasury Secretary Scott Bessent has criticized the EU for proceeding with the trade deal.
  • India's minister of petroleum and natural gas expects the U.S.-India relationship and trade talks to remain positive.
  • Indian Prime Minister Narendra Modi and European Commission President Ursula von der Leyen hailed the deal as 'landmark' and the 'mother of all deals'.
  • The White House has previously imposed tariffs on EU and Indian imports.
  • Experts suggest the EU-India deal is a strong option for both sides, especially with U.S. and China markets remaining less accessible.
  • European officials emphasize the need for greater European economic sovereignty and competitiveness, while also aiming to maintain a respectful relationship with the U.S.

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