EU and UK Falter on US Trade Deal; India Plays the Long Game

New Delhi: While the United States exerts pressure on European nations over Greenland and trade tariffs, India has taken a more calculated approach in its negotiations with Washington, gaining a strategic advantage.

Europe Under Pressure

The US has been pressing European countries regarding Greenland, weakening last year’s trade agreements with the European Union (EU) and the United Kingdom (UK). Despite these agreements, former President Donald Trump threatened tariffs on nations opposing his Greenland ambitions, putting EU legislators on the verge of blocking approval of the EU-US trade deal.

According to the Financial Times, European nations are now preparing retaliatory measures worth €93 billion, including tariffs and restricted market access for US companies. Reuters reports that EU ambassadors have agreed to accelerate diplomatic efforts to counter Trump’s pressure, while preparing anti-coercion instruments that have never been used before.

Tariffs as a Strategic Tool

The episode illustrates that trade agreements with the US do not necessarily shield nations from future tariffs. For Trump, tariffs became a key instrument to achieve both political and geopolitical objectives.

Trade Deal Approval Stalled in Europe

The European People’s Party (EPP), the largest political group in the European Parliament, has publicly opposed the agreement. Its chair, Manfred Weber, stated that while EPP supports an EU-US trade deal, Trump’s threats over Greenland prevent approval at this time. He also suggested blocking EU agreements to reduce tariffs on US goods.

Although the EU-US trade agreement negotiated last summer with Trump has been partially implemented, it still requires parliamentary approval. A vocal group of EU lawmakers has long opposed the deal, arguing that it disproportionately favors the US. Following the July agreement, the US increased steel and aluminum tariffs to 50% on hundreds of additional European products, intensifying tensions.

India’s Calculated Approach

Meanwhile, the US has been eager to finalize a trade deal with India, which has long remained pending. Trump has demanded that India open up its agriculture and dairy sectors, facing strong resistance in New Delhi. Despite the US imposing 50% tariffs on Russian oil imports via India, India has not rushed into an agreement, unlike Europe.

Indian negotiators recognized early what Europe is now confronting: a hastily concluded deal may offer short-term optics but little long-term security. By prioritizing patience and strategic depth over quick closure, India has positioned itself to negotiate from strength, showing that measured diplomacy can yield sustainable results.