Trump's Tariffs Pushed India-EU Deal: A Blessing in Disguise for Global Trade

• Donald Trump's 'America-first' tariff policies inadvertently spurred global cooperation, pushing countries to seek new trade alliances.
• The recently signed India-EU agreement is a direct consequence, serving as an insurance policy against US trade unpredictability for both blocs.
• For Europe, India offers scale, growth, and a democratic counterweight; for India, Europe provides market depth, technology, and diversification.
• The deal, fast-tracked after two decades, aims to reduce Europe's reliance on US and Chinese supply chains and give India access to high-value markets.
• While promising tariff reductions and market access for sectors like engineering, textiles, and IT, challenges remain in execution, especially regarding climate clauses and regulatory asymmetry for Indian MSMEs.

Why It Matters: Trump's tariffs unexpectedly accelerated the India-EU trade deal, creating a strategic opportunity amidst global trade shifts.