President of the United States Donald TrumpMonday’s announcement that he had struck a trade deal with India follows Europe’s signing of a trade deal with New Delhi, signaling Washington’s reluctance to be overtaken by global rivals.

The European Union and global trading partners such as India, China and Canada have signed their own trade agreements since the new year, leaving the United States, which has always been willing to take a shot at imposing punitive tariffs on trading partners. looking ostracized.

Analysts have said the deals, especially the EU-India deal, could “Ignition” under the United States The dust has settled on a stalled trade deal with India, but it’s moving faster than most expected.

trump card announced on the Truth social media platform on Monday. The United States will cut major tariffs on India from 25% to 18%. He said Washington would also lift an additional 25% tariff imposed on New Delhi last summer in retaliation for its purchases of Russian oil.

Trump said in the post that India would stop buying Russian oil and would purchase “more than $500 billion worth of American energy, technology, agricultural products, coal and many other products” and remove trade barriers with the United States. No official word has been released on Trump’s remarks.

US-India Agreement—— Asian markets cheer “This is a strong answer to those who think the EU is flanking or accelerating the United States on trade,” Terry Haines, founder of analytics firm Pangea Policy, said on Tuesday. commented It’s LinkedIn.

“The U.S.-India deal is Trump’s next major national security strategic x economic ‘interdependence’ trade deal with major U.S. allies/major non-aligned countries,” Haines noted.

He added: “This is a strong signal that Trump is ‘walking and chewing gum’, not letting geopolitics distract from the U.S. economy and continuing to strike major trade deals.”

The swift conclusion of the U.S.-India deal was not lost on analysts, as it was signed a week later. ‘Landmark’ EU-India Free Trade Agreementor free trade agreement, has been reached.

In the free trade agreement, regional powers agreed to reduce tariffs on a range of each other’s imports to almost zero, but they also said the agreement would be phased in over several years. Still, both sides welcomed the deal, which took decades to negotiate. “The mother of all transactions”.

Fava Amer, director of the South Asia Initiative at the Asia Society Policy Institute, commented on Tuesday that the conclusion of the U.S.-India deal was “interesting because it came immediately after the signing of the EU-FTA.”

“Although India-US trade talks have been ongoing for some time, the agreement with the EU could have been the impetus for the US to move forward with the deal. Again, the leadership engagement we have been talking about from the beginning ultimately led to the agreement,” he said in emailed comments.

prime minister of india Narendra Modi Confirming that the latest agreement with the United States has been reached, Post on X On Monday, he was “pleased that tariffs on products made in India will now be reduced by 18%” and thanked Trump for his leadership.

Although official details of the deal remain scarce, the agreement is seen as a “win-win” for both parties.

“This is a very important thing because it is also happening on the back of the EU Free Trade Agreement,” Ranen Banerjee, partner and economic consulting leader at PwC India, told CNBC’s Amitoj Singh.

“With the EU FTA and the US coming in (the deal), it will be a huge boost to employment and employment in India. So I would say it’s a win-win for both countries.”

Arpit Chaturvedi, Teneo’s South Asia adviser, agreed that the US-India deal “needs to be read alongside India’s free trade agreement with the EU”.

“The deal provides an alternative Western economic anchor at a time of global tariff volatility, taking some pressure off New Delhi. Even so, the U.S. deal still carries greater strategic weight,” he said in an emailed analysis on Tuesday.

“Stabilizing trade relations with Washington thus goes beyond tariff calculations and strengthens India’s position in Western supply chains and strategic calculations. The agreement also represents a reset in India-US strategic relations, potentially enabling both sides to engage on a relatively equal footing.”

“Trump’s social media posts indicate that a deal has been reached with India to reduce tariffs paid by U.S. importers… (but) the move will have little impact on the affordability crisis in the United States – Indian imports account for less than 3% of total U.S. imports. While tariff increases are easily passed on to consumers, tariff reductions are (oddly) unlikely to be passed on to the United States,” Donovan said in a statement. UBS Podcast Tuesday.