In recent months, efforts by the US to secure or deepen trade agreements with key international partners have progressed unevenly, reflecting broader geopolitical tensions and shifting priorities in global trade policy. Negotiations with the UK, the EU and India illustrate how complex and unpredictable modern trade diplomacy has become.
UK: Limited deal reached, but full agreement still unfinished
The US and UK struck a limited trade agreement in May 2025, often described as an "Economic Prosperity Deal," marking the first trade pact of the Trump administration. Under the deal, the two countries rolled back certain tariffs, including steel and US imports, as well as expanded market access for select American exports. However, the agreement has stopped short of a comprehensive free trade agreement and leaves broader tariffs in place on many UK goods. Continued discussions are aimed at finalizing more detailed provisions on digital trade, intellectual property and regulatory cooperation.
Although both sides have portrayed the framework as historic, it remains limited in scope and requires further negotiation and legislative approval to evolve into a full free trade pact. Meanwhile, UK exporters continue to face higher US tariff burdens on a range of products, underscoring unfinished business in transatlantic trade ties.
EU: Trade deal in limbo amid tariff threats and political pushback
Negotiations with the EU aimed to liberalize large parts of the transatlantic trade relationship while setting new reciprocal tariff terms. These discussions culminated in a political framework agreement in August 2025. The blueprint envisaged 15 percent tariffs on most EU exports to the US and zero tariffs on certain American goods, among other commitments.
However, ratification of that deal is now in jeopardy. Lawmakers in the European Parliament have suspended the trade pact, citing concerns over recent US tariff threats, including proposals of tariffs on allies over geopolitical disputes, and a perceived erosion of trust in the negotiation process. Bernd Lange, chair of the European Parliament's trade committee, said that until controversial US actions, such as tariff threats tied to Arctic negotiations, are resolved, there is no possibility of compromise on the deal.
President Trump subsequently announced a "framework" agreement on Greenland with NATO allies that eased, at least temporarily, plans for punitive tariffs. Still, the broader future of the EU–US trade deal remains uncertain as ratification stalls and political tensions linger.
India: Active but unfinished talks amid high tariffs and strategic ties
Trade negotiations between the US and India have continued despite setbacks and high tariff barriers. Both countries remain actively engaged, with a scheduled call in January 2026 aimed at discussing outstanding trade issues. Washington's newly appointed ambassador to New Delhi, Sergio Gor, said that discussions would continue after previous rounds stalled, reflecting a mutual interest in finalizing a bilateral trade deal.
India's trade relationship with the US has been complicated by a 50 percent tariff on Indian exports – one of the highest applied by Washington – imposed after trade talks faltered in 2025. These duties, tied in part to India's purchase of Russian oil, have pressured negotiators to find common ground. Commerce secretary Rajesh Agrawal has indicated that the two sides are close to a deal but remain cautious about declaring timelines.
President Trump himself said at the World Economic Forum in Davos that the US and India are on track for a "great" trade deal, though reports suggest some diplomatic friction over communication and negotiation dynamics.
What this means for global trade
Across all three negotiation tracks, a common theme emerges: tariff policy, geopolitical issues and domestic political dynamics are shaping outcomes as much as economic interests. The UK deal remains a framework rather than a full free trade agreement. The EU pact is paused by political objection to US tariff tactics and India–US talks continue amid high protective duties and broader strategic engagement.
As global trade becomes increasingly politicized and interconnected with security concerns, trade negotiations are no longer just commercial exercises but complex diplomatic endeavors.