As Trump has reached a long-pending trade deal with India, European Council leader said India’s “mother of all trade deal” with the EU made Washington “nervous” and prompted a rapid policy response.
As US President Donald Trump reached a trade deal with India, European Council leader Carl Bildt said the India-EU “mother of all trade deals” had made Washington “nervous” and prompted a rapid policy response.
Bildt said the EU trade deal with India “obviously made Trump nervous,” prompting the US president to “quickly adjust American policies.” “That was a good thing for both countries and demonstrated EU leadership,” he added in a post on X, sharing a TV interview clip featuring US envoy Sergio Gor.
US-India trade deal announced
The long-pending bilateral trade deal was announced by President Trump on social media, just a week after India finalised its negotiations with the European Union. Under the agreement, the US will cut its tariffs on Indian goods from 25 per cent to 18 per cent.
Washington had previously imposed a 25 per cent tariff on India, along with an additional 25 per cent on imports linked to Russian oil. The announcement follows India’s signing of the “mother of all trade deals” with the EU last week.
Reciprocal tariff cuts
Trump said the revised tariff rate would take effect immediately. In return, he claimed India had agreed to reduce its tariffs and non-tariff barriers on US products to “zero,” marking a major step in bilateral trade relations.
Push for higher US exports
Trump also said India would significantly increase purchases of American goods and services. According to him, New Delhi has committed to “buy American” at a much higher level, including more than $500 billion worth of US energy, technology, agricultural products, coal, and other exports.
Significant breakthrough amid trade tensions
The deal comes after months of heightened trade tensions triggered by Washington’s unilateral moves. Last year, the US had imposed steep duties on Indian goods, including a 25 per cent reciprocal tariff, partly over concerns about India’s energy ties with Russia.
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