Outside the US, trade agenda is kick-started by Trump tariffs

MUCH of the global business conversation in 2025 has centred on the destabilising impact of the Trump administration’s tariff agenda. However, what is less discussed is the unexpected stimulus it has given to a wider trade liberalisation agenda outside of the United States.

Soon after Donald Trump was re-elected US president last November, for instance, the European Union agreed on a big trade agreement with the Mercosur bloc in South America, including Brazil and Argentina, creating a more integrated market of the best part of 800 million people. This represented a breakthrough after some two decades of negotiations, and uncertainty emanating from Trump’s win was unquestionably a key driver of the deal.

Fast forward around half a year, and last week saw the latest key agreement – this time between India and the United Kingdom. The UK government forecasts the deal will increase bilateral trade by £25.5 billion in the long run.