EU-India trade deal may still face U.S. uncertainty

India and the European Union announced a free trade deal that would remove or reduce tariffs on more than 90% of goods, with India agreeing to lower tariffs in agriculture and autos; U.S. reactions, including from President Trump and Treasury Secretary Scott Bessent, remain uncertain and are being watched alongside U.S.-India negotiations and an upcoming Federal Reserve policy meeting.

India and the European Union announced a free trade deal intended to remove or reduce tariffs on more than 90% of goods traded between them. The agreement, nearly two decades in the making, includes Indian commitments to lower tariffs in politically sensitive sectors such as agriculture and autos. The pact arrives amid a broader shift toward bilateral trade accords as countries adjust supply chains and commercial ties. Observers are noting that reactions from the United States and the outcome of related negotiations will be important to watch. Key developments: - India and the EU announced a free trade deal removing or reducing tariffs on more than 90% of traded goods. - India agreed to lower tariffs in agriculture and autos, two politically sensitive sectors. - The agreement has been in negotiation for nearly two decades. - U.S. President Donald Trump had not publicly weighed in as of the report, and U.S. reaction was described as uncertain. - U.S. Treasury Secretary Scott Bessent criticized the EU for the agreement in an interview with ABC News. - India's Minister Hardeep Singh Puri said U.S.-India talks are at "a very advanced stage," and the U.S. Federal Reserve was concluding a policy meeting whose statements were expected to be closely parsed. Summary: The pact marks a notable shift in EU-India commercial ties, but its broader effects remain unsettled. Near-term developments to follow include how U.S. officials respond and the progress of U.S.-India negotiations, alongside commentary from the Federal Reserve. Undetermined at this time.