The EU-India commerce deal story isn’t over but

On Tuesday, India and the European Union introduced a “landmark” free commerce deal that might take away or cut back tariffs on greater than 90% of products traded between them. 

The deal, almost twenty years within the making, will see India decrease tariffs in two of its most politically delicate sectors, agriculture and autos. It additionally lands amid a rising wave of bilateral commerce agreements, as international locations recalibrate provide chains and business ties in response to Washington’s more and more muscular use of tariffs.

That broader shift is already seen. Earlier this month, Canadian Prime Minister Mark Carney visited China, the primary chief in his position to take action in 17 years, in a bid to broaden financial partnerships with the world’s second-largest economic system. UK Prime Minister Keir Starmer is ready to comply with with a three-day journey to China, the primary by a British prime minister since 2018.

Nonetheless, the India-EU pact, memorably dubbed the “mom of all offers” by European Fee President Ursula von der Leyen, has but to clear its most unpredictable hurdle: U.S. President Donald Trump.

Trump, who has slapped punitive tariffs on mates and foes alike, has but to weigh in on the India-EU settlement. His silence is notable.

In August final yr, the U.S. imposed increased levies on Indian items over India’s oil purchases from Russia, days after imposing a 25% responsibility on New Delhi.

With Trump’s latest escalating rhetoric towards the EU, together with threats tied to Greenland, his response looms as a persistent cloud over the “historic” deal. And that cloud darkened additional when U.S. Treasury Secretary Scott Bessent criticized the EU for forging a commerce settlement with India in an interview with ABC Information on Sunday.

However maybe it is not all doom and gloom, because the U.S. and India are at “a really superior stage” of finalizing a highly-anticipated deal, India’s Minister of Petroleum and Pure Fuel Hardeep Singh Puri advised CNBC Tuesday. 

One other cloud weighing on buyers’ minds is the U.S. Federal Reserve, which concludes its coverage assembly Wednesday. Charges are extensively anticipated to stay unchanged, however Chair Jerome Powell’s remarks can be carefully parsed amid renewed political strain on the central financial institution.

U.S.-India commerce deal on the playing cards? Each international locations are at “a really superior stage” of finalizing an settlement, India’s Minister of Petroleum and Pure Fuel Hardeep Singh Puri advised CNBC Tuesday.

S&P 500 closes at a document. On Tuesday stateside, the benchmark rose to a brand new all-time intraday excessive on good points in Large Tech, forward of key earnings from corporations within the sector. The Nasdaq Composite additionally climbed, however the Dow Jones Industrial Common fell. European shares ended increased after the EU-India commerce deal was introduced. 

A partial U.S. authorities shutdown. That appears doable starting early Saturday, largely because of robust Senate Democratic opposition to funding for the Division of Homeland Safety and different companies, after the second latest killing of a U.S. citizen by federal brokers in Minneapolis. 

Anthropic seals funding spherical above $10 billion goal. The AI firm closed a funding spherical totaling between $10 billion and $15 billion, led by Coatue and Singapore sovereign wealth fund GIC, in response to sources conversant in the discussions. 

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