Holly Ellyatt
U.S. President Donald Trump’s announcement Monday that he has agreed a trade deal with India comes hot on the heels of Europe’s own trade agreement with New Delhi, signaling Washington is not willing to be outdone by its global competitors. The U.S. deal comes after global trading partners like the European Union and India, and China and Canada, have signed their own trade pacts since the new year, leaving America — which has been trigger-happy when it comes to imposing punitive tariffs on trading partners — looking ostracized.
Analysts had said those deals, and particularly the EU-India pact, could “light a fire” under the U.S. to get its own stalled trade agreement with India done and dusted, but it has come quicker than most expected. Trump announced Monday on the Truth Social media platform that the U.S. would cut the main tariff on India from 25% to 18%. He said Washington would also remove an additional 25% tariff it had imposed on New Delhi last summer in retaliation for its Russian oil purchases.