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EU and India Sign Sweeping Trade Deal as Brussels Accelerates Global Pacts

The pact signals Brussels’ push for economic autonomy under renewed U.S. tariff pressure.

Overview

  • The agreement cuts or removes tariffs on most goods and is estimated to save EU exporters about €4 billion each year.
  • The deal links two markets approaching 2 billion consumers, tapping India’s large, fast‑growing middle class.
  • The EU will commit €500 million to support India’s sustainable industrial transition as part of the accord.
  • U.S. officials criticized the move due to India’s purchases of Russian oil, with Treasury Secretary Scott Bessent warning of self‑defeating financing.
  • The accord caps a year of rapid EU trade activity with Mexico, Chile and Indonesia as the separate EUMercosur pact faces a legal challenge at the EU Court of Justice.