economy
February 1, 2026
The Guardian view on the EU’s answer to Trump: trade without threats
Europe’s India and Vietnam deals signal a historic shift away from coercion towards cooperation that respects developing countries’ sovereignty
TL;DR
- The EU's trade deals with India and Vietnam represent a shift from coercion to cooperation, respecting developing countries' sovereignty.
- Unlike previous models, the EU now encourages industrial upgrading and allows for policy space in partner countries.
- These deals contrast with the US's approach of using trade as a tool of compulsion and signal a move towards interdependence without demanding submission.
- The EU's strategy acknowledges that rich countries historically grew through protection and state support, and that developing nations require similar policy space.
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