India and the European Union have signed a major free trade agreement that leaders from both sides are calling a “landmark” moment. The deal, which took nearly 20 years to finalize, is being described as the “mother of all deals” by Indian Prime Minister Narendra Modi and European Commission President Ursula von der Leyen.
The agreement aims to slowly remove tariffs on most goods traded between India and the EU. Only a few sensitive sectors have been kept out. Supporters say the deal will boost trade, create jobs, and strengthen economic ties between the two regions.
However, attention has now shifted to how U.S. President Donald Trump will respond.
Many experts see the India–EU deal as a way to protect against unstable U.S. trade policies. In recent years, the U.S. has imposed high tariffs on both Indian and European products. Last year, the White House placed a 15% tariff on EU goods and a much steeper 50% tariff on Indian imports, partly due to India’s oil trade with Russia.
So far, Trump has not publicly commented on the new agreement. But senior U.S. officials have already shown displeasure. Treasury Secretary Scott Bessent recently criticized Europe for moving ahead with India while the U.S. continues to impose trade restrictions.
“The U.S. has made bigger sacrifices than Europe,” Bessent said, pointing to tariffs imposed on India. He questioned why Europe chose to sign a deal with New Delhi under these conditions.
India, however, remains confident about its relationship with Washington. Petroleum Minister Hardeep Singh Puri said the ties between India and the U.S. are strong and should stay that way. He added that trade talks with the U.S. are still possible and urged calm.
India has said it supports open and fair global trade. Officials believe the EU deal shows India’s commitment to working with multiple partners and expanding access to international markets. At the same time, European leaders are being careful. They want to grow their own economy and rely less on the U.S., but they also don’t want to damage their relationship with Washington.
David McAllister, a senior leader in the European Parliament, said Europe needs to stand on its own feet and become more competitive, while still respecting its long-standing partnership with the United States.
As India and the EU move ahead with this new trade deal, many around the world are watching closely to see how President Trump will react.
