EU & Canada Pivot to India: The ‘Mother of All Deals’ Snubs Trump’s Tariff War

It’s Thursday, January 29, 2026, and if you’re looking for the moment the global trade map officially re-centered, this was the week. While the US is busy building “Fortress America” with 50% tariffs, the rest of the world just finished building a bypass.

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The thing is, the India-EU Free Trade Agreement (FTA)—signed just three days ago on January 26—isn’t just a deal. It’s a “middle finger” to the mercurial trade policies coming out of Washington. Or nothing.

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The “Mother of All Deals”: Field Notes

It’s an ongoing situation where the EU and Canada have decided that India is a much safer bet than an unpredictable US. Here’s the ground reality:

• The 2-Billion-Person Market: By signing this deal, the EU and India have created a free trade zone covering 25% of global GDP. Let’s be real—Trump’s Treasury Secretary, Scott Bessent, called the move “very disappointing” yesterday. He basically accused Europe of picking cheap Indian energy and trade over the war in Ukraine. Those too.

• The “Tariff Slap”: India is slashing import duties on European cars from a staggering 110% down to 10% over time. In return, Indian textiles, gems, and footwear (all hit by Trump’s 50% US tariffs) will now enter Europe duty-free. The thing is, this restores the “GSP” benefits India lost years ago.

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• Canada’s “Oil Pivot”: After Trump threatened to treat Canada like a “vassal state” and mocked their energy exports, PM Mark Carney (who took over after the Trudeau era) is shifting focus. Canada is now preparing to ship crude and LNG to India instead of sending 98% of it to the US. And here’s the kicker—Carney is heading to Delhi in March to sign a C2.8 billion uranium deal. Or nothing.

• The UK & China Ripple: Even the UK is mending fences. PM Keir Starmer is currently in Beijing—the first visit by a British leader in 8 years. Why? Because when the US closes its doors, everyone else starts looking for a window. Those too.

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The New Trade Alliances (Jan 2026)

And Here’s the Kicker…

The US Trade Representative, Jamieson Greer, admitted yesterday that “India comes out on top” in this deal. The thing is, while the US focuses on “fixing globalization,” the rest of the world is just moving on without them. India is now the “indispensable partner” because it’s the only large economy still growing at 8.2%. Those too.

One side comment—Trump is already threatening a 100% tariff on Canada if they move too close to China. It’s an ongoing situation where the more he squeezes his allies, the faster they run toward New Delhi. Or nothing.

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End…

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