96. GEO.....THE PRICING WALL FOR U.S GOODS. EU- INDIA FTA.

The specific impacts on U.S. companies operating in India following the landmark 2026 deal.

The U.S. Business Squeeze in India

The 2026 India-EU Free Trade Agreement—dubbed the "Mother of All Deals"—has fundamentally shifted the playing field. While Brussels and New Delhi celebrate, American boardrooms are facing a new, tougher reality.

1. The "Price Tag" Penalty

U.S. companies are now staring at a massive tariff gap. While European goods will see duties vanish, American products remain stuck behind India’s high tariff walls.

Luxury Autos: German brands (BMW, Mercedes) will see tariffs drop from 110% to 10%. American brands like Tesla or Ford (importing from the U.S.) still face the full 110%, making them nearly twice as expensive as their European rivals.

Premium Goods: From whiskey to walnuts, European exports are getting a 20-80% price cut. U.S. farmers and distillers are effectively being priced out of India’s booming middle-class market.

2. The Supply Chain "Pivot"

U.S. manufacturers based in India (like GE or Boeing) are now incentivized to look toward Europe rather than the U.S. for their needs.

Cheaper Parts:  It is now significantly cheaper for a U.S. factory in India to source high-tech machinery and components from Germany or Italy duty-free than to bring them in from the United States.

Export Advantage: Ironically, U.S. tech giants like Apple or Google that manufacture in India are winners here—they can now ship "Made in India" products to the entire EU market duty-free.

3. The Talent Dra

The deal includes a major Mobility Pact that makes it easier for Indian professionals to work in Europe.

Easy Visas:  While the Trump administration maintains strict H-1B policies, Europe has just opened a "VIP lane" for India’s top tech talent.

Hiring Hurdles: U.S. firms in India may find it harder to retain their best engineers, who now have a friction-less path to European tech hubs like Berlin or Paris.

4. The "Double Jeopardy" of U.S. Policy.

Perhaps the biggest impact is the geopolitical squeeze.

Russian Oil Tariffs: The Trump administration currently imposes a 25% tariff on many Indian goods due to New Delhi's energy ties with Russia.

The Result: U.S. companies in India are being hit twice. They pay more to get parts *into* India than the Europeans, and they pay a "penalty tariff" when they try to ship their finished products back to the American market.

For the first time, U.S. companies are "the outsiders" in one of the world's fastest-growing economies. Without a similar U.S.-India trade deal, American firms will continue to lose market share to European competitors who now have the home-field advantage.

American tech companies like Apple or Google that manufacture in India can now export those "Made in India" products to the entire EU market duty-free. This may actually increase U.S. investment in India, but as a hub for European sales rather than American ones.

                                                                         ..........PENDYALA VASUDEVA RAO

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