Mapusa (Goa), February 3 — Former Minister of State for External Affairs MJ Akbar said the recently announced India–US trade pact is the “first child” of the India–EU deal, which he called the “mother of all trade deals” concluded on January 27. Speaking after the US announcement, Akbar argued the EU agreement changed Washington’s calculus and blunted American pressure. He noted that when the EU became a viable alternative market, US threats—such as tariffs intended to force concessions—lost leverage because items shut out of the US market, including gems, seafood and textiles, could still find buyers in Europe.
Akbar framed the outcome as a vindication of Prime Minister Narendra Modi’s approach, which he described as “cooperative nationalism”: prioritising India’s interests while pursuing mutually beneficial international partnerships. He said Modi rejected advice to yield to what Akbar termed “tariff aggression,” insisting that India would not compromise its autonomy, self‑respect or honour.
Akbar added that the episode should strengthen India–US ties. He suggested the United States has registered the cumulative effect of India’s stance and that bilateral relations are now likely to rest on firmer foundations capable of delivering on long‑standing promises between the two democracies.
The US announcement followed a period of tension after Washington imposed steep tariffs—reported at 50 percent—on certain Indian goods in August 2025. The agreement announced by the Trump administration reportedly includes significant duty reductions and a commitment by India to halt purchases of Russian oil. President Trump said on his social platform that he had spoken with Prime Minister Modi, calling him a friend and a powerful leader, and said Modi agreed to stop buying Russian oil and to increase purchases from the United States and potentially other suppliers. Trump also said the pact would lower the US reciprocal tariff from 25 percent to 18 percent and that India would move to reduce tariffs and non‑tariff barriers to the United States.
President Trump framed the deal as involving large US purchases of energy, technology, agricultural products and other goods. Prime Minister Modi confirmed the agreement on X, saying he was pleased that tariffs on “Made in India” products would be reduced to 18 percent, thanked President Trump on behalf of India’s 1.4 billion people, and stressed that cooperation between two large economies and democracies creates opportunities for mutually beneficial growth.
The India–US announcement comes on the heels of the comprehensive India–EU package finalised on January 27 in the presence of Prime Minister Modi, European Commission President Ursula von der Leyen and European Council President Antonio Costa. The two sides issued a joint strategy document, “Towards 2030: A Joint India–European Union Comprehensive Strategic Agenda,” and exchanged instruments including a political declaration marking the conclusion of India–EU Free Trade Agreement negotiations, an India–EU Security and Defence Partnership, and a comprehensive mobility framework, underscoring the deepening and multifaceted nature of India’s ties with the EU as well as with the United States.
