‘EU-India trade deal made US nervous,’ says European official after Trump cuts tariffs to 18%

Carl Bildt said the EU-India trade deal pressured the US to cut tariffs to 18 per cent, a move welcomed by President Trump and Prime Minister Modi as strengthening India-US economic ties.

Former Swedish Prime Minister and Co-Chair of the European Council on Foreign Relations, Carl Bildt said that the European Union’s trade agreement with India played a key role in prompting the United States to adjust its trade policies toward New Delhi.

Reacting to US President Donald Trump’s announcement of a trade deal between India and the United States, Bildt said the EU-India agreement had made Washington “nervous,” forcing a quick policy adjustment.

“The EU trade deal with India obviously made Trump, US nervous - and quickly he had to adjust US policies. That was a good thing for both countries -EU gave leadership,” said Carl Bildt, Co-Chair European Council on Foreign Relations,” he said in a post on X.

Earlier, US President Trump announced that the United States had reached a trade understanding with India, citing “friendship and respect” for Prime Minister Narendra Modi. In a post on Truth Social, Trump said the US had agreed to reduce reciprocal tariffs on Indian goods from 25 per cent to 18 per cent.

Prime Minister Narendra Modi also confirmed and welcomed the trade deal with the United States, citing that two large economies and the world’s largest democracies work together.

“Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18 per cent. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement,” PM Modi wrote in a post on X.