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“Trade grows on trust, not threats”: As Trump’s tariffs hurt Americans, Modi and EU leaders seal the historic "mother of all deals" in New Delhi, isolating Washington as India outpaces the US in a shift redefining global trade relations

The landmark Free Trade Agreement between India and the European Union, often described as the “Mother of all deals,” has sent strong ripples far beyond New Delhi and Brussels. While India and the EU move forward with this sweeping economic pact, the United States remains without a finalized trade agreement with India, despite months of discussions. The contrast has not gone unnoticed. American media outlets are closely tracking these developments and are now openly criticizing former US President Donald Trump, especially for policies that appear to have hurt American citizens more than foreign economies.
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India’s achievement has struck a chord across the Atlantic. The India–EU FTA has received widespread attention in the US press, accompanied by sharp commentary on Trump’s tariff-heavy approach. These reports argue that the aggressive use of tariffs, aimed at both allies and rivals, has backfired and created economic pain at home rather than abroad.
United States Trade Representative Jamieson Greer openly acknowledged India’s advantage from this agreement during an interview with Fox Business. He explained that India is set to benefit significantly through broader access to European markets, labour-related advantages, and potential mobility opportunities for Indian workers within Europe.
Greer explained the broader strategy behind these shifts, stating, “Strategically, it’s important to understand that because President Trump has prioritised domestic production and essentially started charging a fee for other countries to access our market, they are looking for other outlets for their overproduction. The EU is turning to India to try to find a place. The EU is so trade-dependent that they need others if they can’t keep sending all their stuff to the United States.”
He further underlined India’s strong position in the deal, remarking, “I have looked at some of the details of the deal so far. I think India comes out on top on this, frankly. They get more market access and immigration rights to Europe. India is going to have a heyday with this and low-cost labour.”
A Bloomberg report titled “EU and India Clinch ‘Mother of All Deals’ in Rebuff to Trump” detailed how both sides came together to strengthen economic ties at a time when US tariffs have disrupted global trade patterns. The report highlighted that the agreement reflects deeper shifts in global alliances triggered by Washington’s increasingly unpredictable trade policies.
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Bloomberg Highlights the Changing Global Trade Order
Bloomberg stressed the broader geopolitical context of the deal, noting, “The conclusion of negotiations reflects the rapidly shifting global alignment under US President Donald Trump. The EU, despite long clashing with Indian officials on trade policy, is focused on paring back its economic reliance on the US and China. India is trying to shake its protectionist reputation and offset a 50% Trump tariff while at the same time balancing ties with Russia.”
The report also pointed out that Prime Minister Narendra Modi has been actively seeking new markets for India. The EU agreement marked his fourth major trade pact since May, following similar deals with the United Kingdom, Oman, and New Zealand. According to the article, Modi is also looking to secure strategic resources and expand India’s global influence through potential alliances with the Gulf Cooperation Council, Chile, Peru, and the Mercosur bloc.
Bloomberg recalled Trump’s earlier remark branding India the “Tariff King,” a label that was soon followed by volatile policy decisions that triggered turmoil in global markets. The report explained the key details of the India–EU deal and noted the positive reactions it received from industry bodies and business leaders on both sides.
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US Tariffs Push India and Europe Toward Each Other
The Washington Post echoed similar observations, describing the FTA as being “driven by the need for new partnerships to shield their markets from an erratic America.” In its report titled “Facing US turmoil, Europe and India announce blockbuster trade deal,” the newspaper stated that the agreement “will deepen ties” between the two economies.
The Post described India as one of the fastest-growing major economies in the world and referred to the European Union as a 27-nation commercial powerhouse that has long been one of Washington’s closest partners. This framing highlighted how US tariff threats have strained relationships that once seemed unshakeable. The article noted, “As Trump upends US alliances and global trade, Europe and India each found themselves staring down the barrel of the president’s tariff threats over the past year.”
It further explained that the Trump administration’s open disregard for the EU, along with signals of stepping back from European security commitments, prompted European leaders to push for “de-risking” from the United States, a strategy previously applied mainly to China.
The report also addressed strained India–US relations, stating, “Indian and US relations are at their lowest point in decades, strained by New Delhi’s decision to publicly reject Trump’s claim that he brokered a ceasefire between India and Pakistan in May.” India has repeatedly denied Trump’s claims of mediation between New Delhi and Islamabad, which reportedly caused irritation in Washington.
The Washington Post added, “India was among the first countries to begin negotiating a trade deal with the Trump administration after the president’s slew of tariffs on dozens of nations last year, but the two sides have not been able to clinch an agreement.” It highlighted that the US imposed some of its highest tariff rates on India, prompting New Delhi to ease tensions with China while reinforcing its policy of strategic autonomy.
The article also pointed out that “the deal comes as India’s economy continues to grow” and that “it represents a way to widen markets and attract investment in the hopes of reenergising the domestic economy.” It concluded by noting that although Trump signed an agreement with the EU, his statements about Greenland and threats of new tariffs against European nations increased concerns about overdependence on the US.
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India’s Resolve Encourages a Shift Away from US Markets
The Wall Street Journal, in its report “EU and India Reach Free-Trade Deal as World Responds to Trump Tariffs,” wrote that the agreement “is the latest example of US trading partners seeking to curb their reliance on America by expanding ties with other markets.” The paper explained how such agreements are becoming more common as countries adapt to uncertainty in US trade policy.
The report mentioned that the EU signed a trade and investment deal with Indonesia last year and recently entered into a free-trade agreement with the Mercosur bloc in South America. It also referred to the India–UK trade agreement and noted that Britain has strengthened trade and security ties with the EU while updating an older agreement with South Korea.
The Journal further noted that Canada and China recently reached a compromise to reduce tariffs on Canadian canola oil and Chinese electric vehicles. These developments, it argued, reflect a multipolar global economy where nations no longer feel compelled to bend to US pressure.
The article underscored India’s steady stance, stating, “India, which is forecast to become the world’s fourth-largest economy this year, has held firm against US demands to open up its markets to dairy products and ethanol. The Indian economy is less dependent on exports compared with countries such as Japan and South Korea, which has allowed New Delhi to hold the line in trade negotiations with Washington.”
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Trump’s Unpredictable Trade Strategy Under Scrutiny
CNN also described the India–EU FTA as “the largest such deal ever clinched by either side, as they contend with an erratic trade policy from key trading partner the United States.” In its report “India and Europe, both stung by Trump, turn to each other in a ‘mother of all deals’ on trade,” the network detailed Trump’s repeated tariff threats and geopolitical posturing.
The article recalled, “Just recently, US President Donald Trump threatened to impose higher tariffs on the European nations opposing his push to annexe Greenland, which belongs to Denmark, though he later backed down from the threats.” It added that the US remains the EU’s largest export market and highlighted that in August Trump announced an additional 25% tariff on India for importing Russian oil and natural gas, on top of an earlier 25% tariff.
CNN further noted, “India also signed trade deals with various countries in 2025, a year marked by Trump’s return to the White House and his chaotic trade policy.”
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Canada Calls the Deal a Stand Against Global Hegemons
The India–EU agreement also drew strong reactions from Canada, where leaders used the moment to indirectly criticize Trump’s approach. Canadian Minister of Energy and Natural Resources Timothy Hodgson described the FTA as a “perfect” response to global hegemons that use tariffs and economic pressure as tools of control.
Speaking at India Energy Week 2026, Hodgson stated, “What is happening in the world today is not a gradual economic transition. It is a rupture. The hegemons of the world have decided that the rules-based order is no longer how the world will work. They have decided that’s not the way the world’s going to work anymore.”
He praised India’s role in finalising the agreement, saying it sent a clear signal in support of free trade and dependable partnerships. Hodgson asserted, “What you just did with the EU signing, the mother of all deals, was a perfect example of how to say no (to hegemons). We’re not going to live in a world where the strongest put tariffs on everyone else. We’re going to live in a world where we believe in free trade, where we believe in trusted relationships.”
He also declared that Canada would “never use our energy for torture” and confirmed Ottawa’s readiness to increase energy exports to India to diversify markets and reduce dependence on the US.
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India Outpaces the US as Americans Feel the Tariff Impact
On a CNBC program hosted by journalist Morgan Brennan, economic policy expert Henrietta Treyz highlighted the widening gap between India and the US in securing trade agreements. She noted that tariffs, strained alliances, and stalled negotiations have created political and economic problems for Trump and his party.
Treyz stated, “India has secured 100% more trade deals than Trump this year. He has merely finalised 2 deals in 10 months with Malaysia and Cambodia, despite the commitment to achieve 90 such agreements in 90 days. The one with South Korea is also not moving forward owing to the myriad issues.”
She further explained, “96% trade with the nation was covered by FTA with no tariffs but Trump’s repeated condemnation of partners like the EU, Japan and South Korea is not bearing fruit. Moreover, 50% of Americans want the tariffs to be revoked by the Supreme Court. The administration is struggling with its affordability message and the failure of these trade deals. This has resulted in a decline in numbers for not only Trump but also the Republican Conference.”
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The Final verdict
European Council President Antonio Luis Santos da Costa and European Commission President Ursula von der Leyen visited India as chief guests for Republic Day and participated in the 16th EU–India Summit. On 27th January, after nearly two decades of negotiations, the Free Trade Agreement was formally announced. The deal stands as clear evidence that global economies can chart independent paths, regardless of pressure from the United States. This reality is increasingly acknowledged within America itself, fueling growing resistance to policies widely seen as damaging under Donald Trump.
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