Three new trade deals announced

EU and India sign trade agreement

The European Union and India have concluded a landmark free trade agreement that removes or reduces tariffs on over 90% of goods traded between the two economies. The deal, which is expected to take effect later this year, significantly cuts Indian tariffs on European autos, machinery, chemicals, agricultural products, and pharmaceuticals, while the EU provides broad preferential access for Indian textiles, leather goods, marine products, gems, and jewelry.

Both sides expect major economic gains, including doubling EU exports to India by 2032 and boosting India’s competitiveness as it diversifies away from U.S. tariff exposure. The agreement also includes sustainability commitments and €500 million in EU support for India’s decarbonization efforts.

U.S. and India set terms for a trade deal

On February 2, the United States announced a trade agreement with India that, according to the U.S. administration, immediately lowers the U.S. reciprocal tariff on Indian goods to 18%, down from 25%, while India would eliminate its own tariffs on U.S. goods.

India has also reportedly agreed to increase purchases of American products, including energy, technology, and agricultural goods. While the tariff reduction was described as effective immediately, implementation documents and formal trade texts had not yet been released as of this report’s publication.

U.S.–Taiwan trade agreement lowers tariffs from 20% to 15%

The trade deal announced on January 15, 2026, with Taiwan—which would reduce the reciprocal tariff and certain Section 232 duties to 15%—still lacks an effective date. Customs and Border Protection has not yet issued supporting implementation details.

Proposed U.S. tariffs

January featured public discussion of potential U.S. tariff increases on goods from the European Union, Canada, and South Korea. However, since November 2, 2025, the only U.S. tariff increase implemented has been on furniture, while at least seven tariff actions have been delayed or reduced over the same period.

This underscores the gap between policy discussions and formal implementation and reinforces the importance of focusing on enacted measures rather than proposed ones.

U.S. Supreme Court tariff decision

The U.S. Supreme Court did not issue a ruling on its tariff case during its January opinion days, leaving unresolved whether the White House has the authority to impose certain tariffs on the grounds of a national emergency.

The next scheduled opinion-release days are February 23–25, unless the Court adds additional dates. The ruling could also slip into early March. The case addresses global reciprocal tariffs and tariffs that were imposed on China, Canada, and Mexico to deter the illegal flow of fentanyl.

New executive order targets oil suppliers to Cuba

On January 29, 2026, the U.S. administration declared that Cuba’s government poses an “unusual and extraordinary threat,” triggering the use of a national emergency to impose tariffs.

Under the directive, the Secretaries of State, Treasury, Commerce, and Homeland Security, along with the U.S. Trade Representative, must determine whether and to what extent additional duties should be imposed on goods from countries that supply oil to Cuba. The move follows the announcement on January 27, 2026, that Mexico paused oil shipments to Cuba.

U.S. and El Salvador finalize reciprocal tariff agreement

The United States and El Salvador released the final text of a new reciprocal trade agreement on January 29, 2026. Under the agreement, goods compliant with the Central America Free Trade Agreement (CAFTA)—including textiles, apparel, luggage, and bags—will be exempt from the 10% reciprocal tariff. Goods not covered under CAFTA, or that fail to meet CAFTA requirements, will remain subject to the tariff.

The agreement’s effective date will be announced after each country completes the necessary legal procedures.

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