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Rebuffing President Trump’s tariffs, India and the EU announced a trade deal on Tuesday aimed at boosting economic ties and also offsetting the impact of tariffs. This latest deal from New Delhi and Brussels comes at a time when the US is still trying to establish a trade agreement with India and shortly after the EU-US agreement almost stalled due to Trump’s pursuit of Greenland.
President Trump on Monday said he was increasing tariffs on goods from South Korea, accusing the country of “not living up to its Deal” with the US. Tariffs on goods from South Korea will jump back to 25%, from 15%.
“Because the Korean Legislature hasn’t enacted our Historic Trade Agreement, which is their prerogative, I am hereby increasing South Korean TARIFFS on Autos, Lumber, Pharma, and all other Reciprocal TARIFFS, from 15% to 25%,” he wrote on Truth Social.
Trump’s latest tariff salvo at a US ally came days after he threatened to impose 100% tariffs on Canada over that nation’s trade deal with China, even though he had previously called the agreement “a good thing.”
In a social media post, Trump said of Canadian Prime Minster Mark Carney that if he “thinks he is going to make Canada a ‘Drop Off Port’ for China to send goods and products into the United States, he is sorely mistaken.”
Canada has negotiated a deal to lower tariffs on Chinese electric vehicles, in return for lower import taxes on Canadian farm products. But the Trump administration claims the agreement may run afoul the United States-Mexico-Canada free trade agreement (USMCA) that is scheduled to be renegotiated this summer.
On Sunday, Carney said his country was rectifying some issues that had developed over the past several years, and that Canada was “going back to the future.” He reiterated Canada’s commitment to the USMCA, which includes not pursuing free trade agreements with non-market economies.
The actions continue a string of renewed tariff-based threats from the president. Last week, Trump called off planned tariffs on European nations over his pursuit of Greenland. Trump cited the “framework of a future deal” reached with NATO Secretary General Mark Rutte.
Trump has said the framework deal would give the US “total access” to Greenland, though he has provided few details. Just days earlier, Trump had said the US would implement 10% tariffs on eight European countries that he says are getting in the way of a US purchase of Greenland.
Read more: What Trump promised with his ‘Liberation Day’ tariffs — and what he delivered
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EU and India clinch major trade deal in rebuff to Trump
India and the EU have agreed on a trade deal, as both countries look to deepen relations and economic ties and offset the impact of President Trump’s tariffs.
The deal between New Delhi and Brussels has been two decades in the making, and it comes at a time when India and the US have failed to agree on a comprehensive trade deal despite months of negotiations. Meanwhile, the EU trade agreement with the US almost stalled last week due to Trump’s pursuit of Greenland.
The India-EU agreement also follows Canada’s trade deal with China, which led Trump to threaten the US’s Canadian neighbors with further tariffs.
Bloomberg News reports:
