In January 2026, three major trade agreements were announced among partners outside the United States, reshaping global trade relations and leaving the U.S. uninvolved directly. They include a free-trade pact between India and the European Union, an EU deal with MERCOSUR members, and ongoing talks between Canada and China (According to).
The agreement between India and the European Union creates a large free-trade zone covering roughly 2 billion people and will cut tariffs on most goods. Ursula von der Leyen called it “mother of all deals.” (reported).
On January 17, the European Union signed a partnership with MERCOSUR countries Argentina, Brazil, Paraguay, and Uruguay, cutting import duties on about 91–92% of exports over 15 years. The EU is the largest investor in MERCOSUR with a trade stock near $467 billion (stated).
Canada and China are negotiating tariff cuts on products including electric vehicles and canola oil, but the talks now remain in limbo. President Trump has threatened 100% tariffs on all Canadian goods if a deal proceeds, writing “China is successfully and completely taking over the once Great Country of Canada. So sad to see it happen. I only hope they leave Ice Hockey alone!” (Ed. note: this threat has been cited as a factor delaying talks) (reported).
