India is strategically diversifying its trade partnerships, increasingly looking towards the European Union as a counterweight to U.S. trade pressures and tariffs. German Chancellor Friedrich Merz's visit highlights this shift, emphasizing a potential EU free trade agreement and enhanced defense cooperation. This realignment is driven by global protectionism and U.S. trade policies, prompting India to seek new markets and collaborators, with Europe emerging as a critical alternative to the U.S. for economic and strategic engagement.