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COVER STORY NOVEMBER 14, 2025 | The Indian Eye 5

Chinese President Xi Jinping, Trump “joint commitment to advancing a
appeared to roll back much of his comprehensive, balanced, fair and
earlier rhetoric—offering conces- mutually beneficial India-EU Free
sions on technology imports and sig- Trade Agreement.”
naling openness to new semiconduc- This steady rhythm of high-level
tor supply talks. Analysts noted that consultations reveals a clear pattern:
these gestures, couched as “strategic India is no longer waiting for Wash-
pragmatism,” marked a quiet retreat ington’s tariff mood swings to dictate
from his once-uncompromising tar- its global economic agenda. Instead,
iff stance, underscoring the limited it is crafting a multi-polar trade net-
leverage Washington gained from work — one that reduces overde-
years of economic confrontation. pendence on any single bloc while
Despite Trump’s self-congratula- expanding its strategic footprint.
tory tone, his recent Asia visit failed For Europe, aligning with In-
to deliver substantive outcomes. He dia offers a hedge against economic
touted “major wins” in trade and overreliance on China. For India, the
security, but regional partners re- FTA framework provides access to
mained cautious, wary of his trans- advanced markets and technology,
actional diplomacy and erratic tariff while preserving policy space to pro-
policy. In Tokyo and Seoul, allies President Donald Trump and Chinese President Xi Jinping talk as they leave after a bilateral tect local industries.
offered symbolic gestures but lit- meeting at Gimhae International Airport, on the sidelines of the Asia-Pacific Economic Cooper- Trump’s softened tone thus ar-
tle binding commitment. Southeast rives at an inflection point. His tar-
Asian nations, meanwhile, deepened ation (APEC) summit, in Busan recently (Reuters/ANI Photo) iff wars with China and the EU have
ties with Beijing amid doubts about shown the limits of economic coer-
U.S. reliability. Even his outreach to with EU Trade Commissioner Ma- commitment to digitalization, clean cion. Against this backdrop, India’s
India was overshadowed by skepti- roš Šefčovič signaled major progress technologies, and AI collaboration confident pursuit of open trade part-
cism about his trade record. Behind toward the long-awaited India–EU — areas likely to be integrated into nerships demonstrates the appeal of
the optics of photo-ops and lofty FTA. Negotiators from both sides the EU-wide trade architecture. Fin- calibrated globalization — a model
promises, Trump’s Asia trip revealed spent the first week of November land even reiterated its support for that balances sovereignty with inte-
a leader struggling to convert specta- hammering out unresolved issues India’s permanent seat on the UN gration.
cle into strategic substance. on goods, services, and rules of ori- Security Council, signaling growing For New Delhi, the message is
While Trump rethinks his tariff gin. “Both sides are committed to political trust. clear: trade diplomacy is the new geo-
playbook, India is quietly weaving balanced and mutually beneficial Portugal, celebrating 50 years of politics. The flurry of negotiations
a global network of free trade part- outcomes,” the Commerce Ministry renewed diplomatic ties with India, with Europe and Oceania showcases
nerships — signaling confidence noted, emphasizing sustainability, echoed the same sentiment. Both na- an India that is simultaneously prag-
and diversification. Commerce and technology, and investment flows as tions agreed to fast-track pending bi- matic and ambitious — willing to ne-
Industry Minister Piyush Goyal’s re- key pillars. lateral agreements in defense, renew- gotiate on equal terms, but unwilling
cent trip to New Zealand reaffirmed This emerging pact reflects a new able energy, and education, framing to bend under pressure.
this new approach. Both sides are maturity in India-EU relations. Over their relationship within the larger In this shifting landscape,
working toward an early conclusion the past year, the EU’s trade delega- EU-India partnership. Belgium, Trump’s hints at reconciliation are as
of a “balanced, comprehensive and tion to India has expanded, with se- meanwhile, hosted the third round much about recognition as they are
mutually beneficial” FTA that spans nior officials from Belgium, Portugal, of Foreign Office Consultations, re- about repair. India, now a $4-tril-
goods, services, investment, and and Finland explicitly supporting an viewing cooperation in trade, innova- lion economy and a manufacturing
technology. early FTA conclusion. In Helsinki, tion, and renewable energy. Belgian alternative to China, has become
The India–New Zealand Busi- India and Finland reaffirmed their and Indian officials reaffirmed their indispensable to any credible trade
ness Forum in Auckland brought strategy. Tariffs can punish, but they
together government and private cannot isolate a nation that is fast
sector leaders to explore new part- becoming the anchor of the Global
nerships in agriculture, education, South and a partner of choice for the
tourism, and space cooperation. developed world.
Prime Minister Christopher Luxon As both sides rediscover the
lauded the Indian diaspora as a “liv- language of friendship, the coming
ing bridge” between the two nations. months could see the re-emergence
For New Delhi, the deal represents of a more balanced trade framework
more than just market access — it’s between India and the United States.
about building resilient trade corri- Whether through tariff relaxation,
dors across the Indo-Pacific. technology partnerships, or energy
Goyal’s outreach underscores a deals, the reset could redefine the
wider strategy: India’s trade diversifi- economic architecture of the In-
cation to counter tariff volatility from do-Pacific.
the West. After signing pathbreaking Trump’s praise for Modi may
agreements with Australia and the sound personal, but it reflects some-
UAE, and fast-tracking talks with the thing larger — a recognition that In-
UK and the European Union, New dia has moved from the margins of
Delhi now views the Indo-Pacific as a global trade to its center. The festival
shared economic theater rather than Union Minister of Commerce and Industry Piyush Goyal meets EU Commissioner for Trade and of tariffs may be ending; a new sea-
a geopolitical flashpoint. Economic Security Maros Sefcovic, in Brussels last month (@PiyushGoyal X/ANI Photo) son of pragmatic cooperation seems
In Brussels, Goyal’s meeting ready to begin.

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