The European Union and India are nearing a "historic" trade agreement, according to the bloc's chief. This move comes as both sides seek to strengthen economic ties and counter rising tariff threats from the United States. The deal aims to bolster their economies amid growing global trade tensions.

For years, EU-India trade talks have stalled over issues like market access for European cars and Indian dairy products. A successful pact would create a massive market of nearly 2 billion people, offering European firms a crucial alternative to China and the U.S. It signals a strategic pivot in global alliances.

The agreement's progress is directly linked to President Donald Trump's protectionist policies, which have unsettled traditional allies. By deepening ties, Brussels and New Delhi aim to build a more resilient trade corridor. Investors will watch for specific tariff reductions and the potential impact on sectors like pharmaceuticals and technology.