France Budget Approved, US-India Trade & More – Business Daily 02/02/2026

French Prime Minister Survives No-Confidence Votes, Trump Announces Tariff Adjustments

French Prime Minister Sébastien Lecornu has survived a series of no-confidence votes, clearing the way for the adoption of the full 2026 budget. The prime minister secured the backing of the Socialist Party to push the bill through parliament, reportedly making some significant concessions in the process.

The votes came after a period of political uncertainty in France, as reported by France 24. The outcome allows Lecornu’s centrist government to proceed with its economic plans for the year.

Meanwhile, in a move that could reshape global trade dynamics, US President Donald Trump has announced he will lower tariffs on Indian goods. This decision follows a commitment from New Delhi to end its purchases of Russian oil, according to France 24.

This shift in US trade policy comes after a period of disruption caused by Trump’s earlier tariff policies, which have prompted countries like Brazil and India to strengthen their economic ties. The New York Times reported on this growing partnership, noting it was partially a response to the uncertainty created by the tariffs.

The evolving relationship between India and the US is occurring alongside ongoing discussions regarding a potential EU-India trade deal. Germany’s Merz reportedly floated the possibility of finalizing such a deal by the end of January, though that timeline has now passed. A comprehensive trade agreement between the EU and India is seen by some as a “mother of all trade deals,” with significant implications for both economies, as reported by The Economic Times.

The EU is also actively pursuing trade agreements with other regions. The Atlantic Council notes that the EU and Mercosur are in the process of creating one of the world’s largest free trade areas, though the deal has faced criticism from various groups, as highlighted by ING THINK. Concerns surrounding the EU-Mercosur deal suggest not everyone is happy with the terms.

India’s economic prospects are also attracting attention from US experts, who are urging a greater focus on manufacturing. IBTimes India reported that US experts are backing India’s growth and advocating for increased investment in the manufacturing sector.

The global economic landscape continues to evolve, with McKinsey & Company’s Global Economics Intelligence executive summary (October 2025) providing a broader overview of key trends and challenges. The report likely offers insights into the factors influencing these trade negotiations and policy shifts.

The tariff adjustments announced by President Trump also have implications for Iran’s trading partners, as Al Jazeera reported. The 25% tariff is expected to impact countries that continue to trade with Iran, potentially further isolating the nation economically.

The Council on Foreign Relations describes Mercosur as a “fractious trade bloc,” suggesting that the EU-Mercosur deal, while significant, may face ongoing challenges and require careful management to ensure its success.

In a separate development, India’s Chief Justice of India (CJI) reportedly “hard-sells” India’s business-friendly legal system in France, according to The Times of India, potentially aiming to attract foreign investment and bolster confidence in the Indian legal framework.