Trump's tariffs may be prompting more trade deals with China and India

The European Union and India announced a landmark free trade agreement, and analysts say recent U.S. tariff actions and trade pressure have coincided with a broader push by countries to forge bilateral deals with China, India and other partners.

The European Union and India announced a landmark free trade agreement after nearly two decades of talks. Leaders described the deal as opening market access across many goods and easing mobility for skilled workers. In recent months other major economies have also pursued bilateral agreements. Observers note these moves have unfolded alongside aggressive U.S. tariff actions and trade threats. Key points: - The EU‑India agreement was called the "mother of all deals" by European officials and will slash tariffs across many products; Indian tariffs on imported EU vehicles were cited as falling from as high as 110% to 10%. The agreement is expected to be formally signed later this year after approval by the European Parliament and EU member states. - India and the EU together account for about 25% of global GDP and roughly a third of global trade; bilateral trade was reported at about $137 billion in 2024-25, compared with about $132 billion for U.S.-India trade in the same period. - Other recent moves include India signing deals with the U.K., Oman and New Zealand, and the EU concluding agreements with Mercosur and several countries in recent years. - The U.K. prime minister visited China with business delegations to discuss trade and investment, and Canada recently announced an agreement with China to lower some tit-for-tat tariffs on products such as canola oil and electric vehicles. - Some analysts quoted in reporting say U.S. tariff pressure and unpredictability have encouraged partners to deepen ties with China and India; other experts warn that concerns about China’s trade practices and geopolitical behavior remain. Summary: The announcement of the EU‑India free trade deal and a string of bilateral agreements have coincided with heightened attention to U.S. tariff policy and its international effects. The EU‑India pact still requires parliamentary and member-state approvals before formal signature later this year. Observers continue to debate how much U.S. tariffs versus longer-term efforts to diversify trade and secure supply chains have driven these recent agreements.