Philenews

EU and India Strike Trade Deal, Sending Message to Trump

Published January 28, 2026, 05:08
EU and India Strike Trade Deal, Sending Message to Trump

The European Union and India have signed a historic trade agreement, creating an economic zone of 2 billion people. This agreement is seen as a response to the trade war initiated by US President Donald Trump, who has imposed increased tariffs on products from the EU and India. The agreement provides for the gradual elimination or reduction of tariffs by India on 96.6% of EU goods exports, while the EU will eliminate 99.5% of its tariffs on goods imported from India within seven years. It is estimated that European exports will save up to €4 billion annually in customs duties. The European Commission expects the agreement to double EU goods exports to India by 2032, supporting hundreds of thousands of jobs in various sectors, including industry, manufacturing, agriculture, and services. The most significant sectors to benefit include machinery, electrical equipment, aircraft, optical, medical, and surgical equipment, as well as plastic products. This agreement sends a message to Trump that there are other trade partners available, referencing the expression 'there are other orange trees that bear oranges'. The US government has not yet officially reacted to the agreement, however, Treasury Secretary Scott Bennett has expressed his dissatisfaction, arguing that Europe is funding the 'war' against itself by purchasing Russian oil refining products from India.