The ongoing tariff standoff between the US and EU could benefit India! The European Union and New Delhi are in the last leg of Free Trade Agreement negotiations. As the US is giving a hard time to EU exports, trade experts are suggsesting that the bloc may now look to strengthen commercial ties with countries like India. US President Donald Trump announced a 10% tariff on goods from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland. The tariffs are directly linked to Greenland, following these nations’ backing of Denmark’s refusal to allow any US acquisition of the territory. The duties are set to begin on February 1, increase to 25% on June 1, and will remain until the US achieves what Trump described as the “complete and total purchase of Greenland,” ET reported.
Sanjay Jain, managing director of TT Ltd, an exporter of readymade garments, said “The EU might want to hasten the operational part of the deal. It may not only give us a better deal but also accelerate the process of ratification.”India and the EU are expected to officially announce the conclusion of FTA negotiations during a summit in New Delhi on January 27. The timing coincides with a state visit by European Council President Antonio Costa and European Commission President Ursula von der Leyen from January 25 to 27. Both leaders will also attend India’s Republic Day celebrations on January 26 as chief guests.An official noted the potential gains for India, saying, “There could be an opportunity for India as it is a stable trade partner in a world full of disruptions,” pointing to India’s rising exports to China amid trade uncertainty between Washington and Beijing.
