India and British strike trade agreement in the midst of Trump’s tariff shift

Great -Britain and India came in on Tuesday with a trade agreement, which strengthens the economic ties between two of the world’s greatest economies in the midst of President Trump’s revolution of the global trading system.

The deal, which, according to the British government, would increase bilateral trade by £ 25.5 billion ($ 34 billion), comes three years after the negotiations started. Intense conversations between Jonathan Reynolds, Great -Britain’s Business and Trade Secretary, and Piyush Goyal, the Indian Minister of Trade, took place last week to complete the excellent issues.

The British government said that India had reduced 90 percent of the rates for goods, and within a decade, most of them would become tariff -free. Tasks on British whiskey and gin would be halved to 75 percent, and eventually reduced to 40 percent. India will also reduce its car rates, which are more than 100 percent, to 10 percent under a quota. Great -Britain, in turn, reduced rates for clothing, footwear and food products, including frozen shrimp.

Last year, trade in goods and services between India and Great Britain, the world’s fifth and sixth largest economies, was £ 42.6 billion, according to British data.

The trade agreement is because many countries try to strengthen alliances and trade flows after Mr Trump has sent shock waves through the global economy by announcing high rates and then pausing on dozens of countries. The uncertainty created by the Whiplash policy is expected to muffle investments and economic growth all over the world.

Civil servants in Britain, who kept 0.1 percent economic In the last quarter of last year, an attempt tried to increase the investments of foreign companies and to sign more trade agreements. Other negotiations, including those with South Korea, continue.

“We are now in a new era for trade and the economy,” said Keir Starmer, the British Prime Minister, Tuesday. “That means going further and faster to strengthen the British economy,” he said, adding that this meant that she meant closer alliances and would reduce trade barriers with other countries.

Since 2020, when Groot -Britain formally left the European Union, the largest trading partner, the nation has tried to conclude new trade agreements. A trade agreement with India had proved to be elusive, even though he was promised by former British Prime Ministers, including Boris Johnson, who said in 2022 that he wanted to reach such an agreement from Diwali at the end of October that year. But the negotiations were stuck to various important issues, including India’s request for more visas for its citizens in Great -Britain. The stalled negotiations were started again in February by the New Labor Government.

Mark Kent, Chief Executive of the Scotch Whiskey Association, said that the reduction of the rates was ‘transformational’ in giving producers of Scotland-made whiskey access to the world’s largest whiskey market. It has the potential to increase exports by £ 1 billion over the next five years.

The announcement offers a bit of good news for Mr. Starmer after one Great setback for his ruling Labor Party In regional and mayor elections last week.

Beyond India there is a potentially larger economic price for Great Britain from new trade agreements with the European Union and the United States.

The progress on an EU deal is expected later this month at a top in Britain. However, the extent to which a deal will alleviate trade friction by Brexit is unclear.

The European Union is the largest and geographically nearest trading partner of Groot -Britain and the United States is the most important individual nation for trade flows. Until now, Britain has not achieved exemptions from American rates about import – also on British cars – and the latest threat from President Trump for Target films made outside the United States, has caused an alarm in the British film industry.