All the biggest trade deals so far in 2026 don’t involve the US

In 2026, the most significant trade agreements announced to date have all left out a major global player. A fresh pact between India and the European Union, an advance on a long‑awaited partnership between the EU and a bloc of South American nations, and a limited deal between Canada and China to slash tariffs on electric vehicles and canola oil are the highlights.

The EU‑India accord, dubbed a “free‑trade zone” that would connect 2 billion people, was hailed by the commission’s president as “the mother of all deals.” She added that this is only the beginning and that other countries will likely follow suit as economies become less dependent on the United States.

But the move is not without complications. Europe’s negotiations with a South American trade bloc have stalled for a legal review, and the Canada‑China agreement has drawn sharp criticism from a former U.S. president.

Throughout 2025, trade analysts focused on U.S.‑centric agreements, with the administration negotiating with several partners amid swift tariff threats. The U.S. trade representative recently attended talks in Davos, and the president is slated to visit China in April. However, the current administration has been more inclined to question existing deals than to announce new ones.

On Truth Social, the president criticized a recent trade agreement between the U.S. and South Korea, threatening to raise reciprocal tariffs from 15 % to 25 %. By the next day, he downplayed the risk of a permanent rupture, telling reporters that a solution would be found.

In contrast, the EU‑India deal was seen as a direct challenge to U.S. dominance in global trade. India agreed to open its market to European cars, and both sides will eliminate or cut tariffs on over 95 % of their shipments. The prime minister called the pact the nation’s “biggest and most historic free‑trade agreement.”

Economic analysts noted that, despite some exclusions, a wide range of sectors—from textiles to chemicals—could benefit quickly, laying the groundwork for medium‑term growth. Meanwhile, the U.S. still levies a 50 % tariff on many Indian goods, a barrier that stalled earlier talks.

The long‑awaited EU‑Mercosur pact, which would link Europe with four Latin American countries and cover more than 700 million people, faced a setback when the European Parliament voted to refer the agreement to the Court of Justice. That referral could delay implementation by years, raising concerns about Europe’s reliability as a trading partner.

Both the EU‑India and EU‑Mercosur agreements will likely undergo similar parliamentary scrutiny in the coming weeks, underscoring the challenges of reshaping global trade without the involvement of the United States.