NextFin news, On Saturday, September 13, 2025, the European Union officially rejected the United States' call for imposing tariffs on India, effectively ending former President Donald Trump's push to pressure India over its purchase of Russian oil. This development comes as India and the EU edge closer to completing a groundbreaking free trade agreement.
The tariff demand was part of Trump's broader strategy to corner India and other countries buying Russian energy amid the ongoing conflict in Ukraine. However, European leaders chose to back New Delhi, signaling a preference for partnership over punitive trade measures.
The negotiations between India and the EU have been progressing steadily, with officials from both sides working to finalize terms that would enhance trade relations and economic cooperation. The deal is expected to be historic in scope, potentially reshaping trade dynamics between the two regions.
Trump's tariff push had included calls for the EU to impose 100% tariffs on Indian imports, aiming to squeeze Russia economically by targeting its energy buyers. Despite these efforts, the EU's rejection marks a significant setback for the US strategy.
The collapse of the tariff initiative was reported by Organiser on Saturday, September 13, 2025, citing sources close to the negotiations and official statements from European and Indian representatives.
In parallel, the US and India have agreed to resume trade talks after weeks of tension related to India's energy purchases from Russia, indicating a possible thaw in bilateral trade relations despite the tariff controversy.
This development occurs amid broader geopolitical tensions involving Russia's war in Ukraine, with the US continuing to threaten sanctions and tariffs as part of its economic pressure campaign.
European support for India in this matter underscores the EU's strategic interest in strengthening ties with New Delhi and pursuing mutually beneficial trade agreements rather than engaging in tariff wars.
The ongoing EU-India trade deal negotiations are expected to conclude soon, marking a new chapter in economic relations between the two entities.
Explore more exclusive insights at nextfin.ai.