India, EU eye stronger trade ties amid looming US tariffs, global uncertainty

India and the EU are trying to expedite a free-trade agreement and boost collaboration in clean technology and strategic alignment in the face of potential US tariffs

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Published: 2:38pm, 25 Feb 2025Updated: 11:16pm, 25 Feb 2025

The European Union is set to hold crucial discussions with India on Friday to strengthen trade ties amid new urgency, as observers warn that looming American tariffs may affect global commerce and reshape trade dynamics between the US, Europe and Asia.

New Delhi and Brussels will also hold their second Trade and Technology Council session, similar to a partnership that India has with the United States. India and the EU have been pursuing a free-trade agreement (FTA) for a long time, but progress has been slow, with talks stumbling over various issues.

“The geopolitical backdrop has turned out to be much more important than what was originally scheduled [for the meeting],” Mohan Kumar, a former Indian diplomat and a professor at O.P. Jindal Global University, told a webinar titled “Understanding the India-EU Partnership in a Shifting World Order” on Monday.

“But if a tariff war with the US and geopolitical uncertainties brought by Trump can’t force India and the EU to sign an FTA, then I don’t know what will,” he said.

US President Donald Trump has repeatedly threatened a trade war with the EU unless the bloc buys more American oil and gas, statements eerily similar to those he made about India after criticising Delhi’s high tariffs.

Indian Prime Minister Narendra Modi visited Washington earlier this month, during which both sides agreed to expand two-way trade, but due to Trump’s erratic nature, experts have suggested that Delhi should diversify its partnerships.