EU on brink of historic trade deal with India amid US tariff tensions

The European Union is on the verge of finalizing a free trade agreement with India, European Commission President Ursula von der Leyen said during a speech at the World Economic Forum in Davos, Switzerland, though she noted that “there is still work to do.”

Speaking on EU efforts to diversify trade, von der Leyen described the potential deal as “historic,” with some referring to it as “the mother of all deals.” She emphasized that the agreement would create a market of two billion people, representing nearly a quarter of global GDP. Von der Leyen is expected to travel to India early next week to advance the negotiations, Caliber.Az reports, citing foreign media.

In the same address, von der Leyen cautioned the United States against imposing punitive tariffs on allied European nations over Greenland. “The proposed additional tariffs are a mistake, especially between long-standing allies,” she said.

She further vowed that Europe’s response to repeated US threats regarding Greenland and tariffs would be “unflinching, united and proportional.” She explained, “Plunging us into a downward spiral would only aid the very adversaries we are both so committed to keeping out of the strategic landscape. So our response will be unflinching, united and proportional.”

Von der Leyen’s remarks come amid escalating trade tensions following US President Donald Trump’s announcement of a 200% tariff on French wines and champagnes, aimed at pressuring French President Emmanuel Macron to join Trump’s Board of Peace, an initiative intended to address global conflicts.

When asked about Macron’s refusal to join the board, Trump dismissed the decision, saying, “Did he say that? Well, nobody wants him because he will be out of office very soon. I’ll put a 200% tariff on his wines and champagnes, and he’ll join, but he doesn’t have to join.”

A source close to Macron confirmed that France currently intends to decline the invitation, signaling potential friction with the US over the initiative.

By Vafa Guliyeva