How India’s FTA with EU made Trump blink on a trade deal with India

Feb 3, 2026 | 15:09 IST

PM Modi and US President Trump in the Oval Office of the White House on Feb 13, 2025

India fast-tracked the India-EU FTA and is negotiating several other trade agreements, including with Canada and also in Latin America, Washington’s hemispheric backyard. This made Trump realise he had to act fast

United States President Donald Trump regards himself as master of the art of the deal. He uses a combination of coercion and carrots. Trump coerced both allies (Canada) and enemies (Iran) with either tariffs or military attack. The threats are often an opening negotiating gambit. In most cases, the targets have tried to appease Trump.

India stood out as an exception. Despite Trump’s punitive 50% tariff, India held firm: no negotiations, no deals, and no appeasement.

TOI

TOI

How India’s FTA with EU made Trump blink on a trade deal with India

India fast-tracked the India-EU FTA and is negotiating several other trade agreements, including with Canada and also in Latin America, Washington’s hemispheric backyard. This made Trump realise he had to act fast

{{{h1}}}

{{{h1}}}

{{{h3}}}

{{{offerprice}}}

{{{h3}}}

{{{offerprice}}}

{{{h1}}}

{{{h1}}}

{{{h1}}}

{{h2}}

{{{h1}}}

{{h2}}

{{{h1}}}

{{h2}}

Your Privacy is Important to us

Opt out of the sale or sharing of personal information

TOI

How India’s FTA with EU made Trump blink on a trade deal with India

India fast-tracked the India-EU FTA and is negotiating several other trade agreements, including with Canada and also in Latin America, Washington’s hemispheric backyard. This made Trump realise he had to act fast

{{{h1}}}

{{{h1}}}

{{{h3}}}

{{{offerprice}}}

{{{h3}}}

{{{offerprice}}}

{{{h1}}}

{{{h1}}}

{{{h1}}}

{{h2}}

{{{h1}}}

{{h2}}

{{{h1}}}

{{h2}}