India is accelerating efforts to finalise free-trade agreements with Britain and the European Union by the end of the year, as it seeks to safeguard its economy against the ripple effects of US President Donald Trump’s latest tariff moves.
Analysts say New Delhi’s move to diversify its trade partnerships reflects a strategic shift to reduce reliance on the US market.
Trump announced steep tariffs on global trading partners last week, triggering turmoil in financial markets. By Wednesday, however, he had reversed course, announcing a 90-day suspension of the duties for most countries – with China notably excluded.
The suspension includes the 26 per cent tariff that Washington had announced on Indian goods, although a baseline global rate of 10 per cent remains in effect.
India was expected to adopt a measured approach in its negotiations with the United States, aiming to secure a trade agreement by September, said T.S. Vishwanath, principal adviser at international trade consultancy ASL-Legal.
At the same time, Delhi is working to expand its trade partnerships to cushion against any potential fallout from American policy shifts.
