India Strikes Trade Deal With European Countries While U.S. Trade Policy Is Stuck In Neutral

India and four European countries, namely Switzerland, Norway, Iceland, and Liechtenstein, have finally signed a free trade pact after 16 years of negotiations. The impact could come in job creation. The Indian Trade Minister Piyush Goyal announced that this agreement is expected to create one million jobs in India over the next 15 years.

It's key to note the European bloc involved in the pact does not include any member countries of the European Union.

Under the agreement, India will secure investment commitments from the European nations. In return, the European countries will gain easier access to the Indian market for processed food and beverages, electrical machinery, and other goods.

Bottom Line

This agreement opens opportunities for European nations to tap into a potential market of 1.4 billion people in India.

Tariff Talk in the U.S.

Former President Donald Trump defended his plan to increase tariffs on Chinese imports if re-elected. In an interview with CNBC’s Squawkbox on Monday, Trump said he was not concerned that potential retaliatory action from China would harm U.S. growth. “That’s OK, they might do that, but they didn’t do that with me,” he said. “Even if they do, let American companies come back to America,” emphasizing the importance of bringing American companies back to the U.S., even if tariffs are imposed.

Trump suggested imposing tariffs as high as 60% on Chinese imports and targeting Chinese manufacturers operating in Mexico. He criticized Chinese companies for relocating to Mexico to sell goods to the U.S. market.

Regarding TikTok, Trump acknowledged the app as a national security threat but indicated a shift in his stance, stating he no longer supports banning it in the US. He also criticized Facebook, suggesting that banning TikTok would benefit Facebook, a company he believes has had a negative impact on U.S. elections.