If you’re a California resident with international business interests, investment portfolios with foreign exposure, or family members abroad, recent developments in global trade policy could directly impact your estate planning strategy. The newly finalized EU-India free trade agreement—announced on January 27, 2026—has created economic uncertainty that may affect how you protect and transfer assets across borders.
What Happened: The EU-India Trade Deal
After nearly two decades of negotiations, the European Union and India have finalized a historic free trade agreement that will gradually eliminate tariffs on the majority of imports between the two trading partners. European Commission President Ursula von der Leyen and Indian Prime Minister Narendra Modi have called it the “mother of all deals”.
The agreement represents a strategic move by both parties to hedge against volatile U.S. trade policies and tariff threats.
How Is the U.S. Responding?
While President Trump has not yet publicly commented on the deal, Treasury Secretary Scott Bessent has already criticized the EU’s decision. Bessent stated: “The U.S. has made much bigger sacrifices than Europeans have. We have put 25% tariffs on India for buying Russian oil. Guess what happened last week? The Europeans signed a trade deal with India”.
The current tariff landscape includes:
India’s Petroleum Minister Hardeep Singh Puri emphasized that the U.S.-India relationship remains strong and expressed optimism for a future trade deal.
Why This Matters for California Estate Planning
For California families managing assets with international connections, trade policy shifts create several estate planning considerations:
1. Asset Valuation Volatility
Changing tariffs and trade relationships can significantly impact the value of international investments, foreign real estate, and business interests. Fluctuating valuations complicate estate tax planning and may require more frequent trust document reviews.
2. Cross-Border Transfer Complications
If you have beneficiaries living abroad or own property in EU or Indian markets, shifting trade policies may affect how efficiently assets transfer across borders. Gift and estate tax treaties could be impacted by deteriorating diplomatic relations.
3. Business Succession Planning
California business owners with supply chains, manufacturing partners, or customer bases in the EU or India face operational uncertainty. This makes succession planning and business continuity strategies even more critical.
4. Currency and Market Risk
Trade tensions often lead to currency fluctuations and market volatility. Trusts holding international assets may need additional provisions for investment management and diversification strategies.
What the Experts Are Saying
Hosuk Lee-Makiyama, director of the European Centre for International Political Economy, noted that this deal represents one of the best agreements available while “the U.S. and China will remain closed as new market openings go”. He also pointed out that “EU trade ministers are now getting used to the fact that there is a new tariff threat coming from Washington every week”.
David McAllister, chair of the European Parliament’s foreign affairs committee, summarized the delicate balance: “Europe needs to become more sovereign…but we also want to maintain the close trans-Atlantic relationship with the United States…this relationship needs to be based on mutual respect and trust”.
How Can California Families Protect Their Assets?
In times of international economic uncertainty, proactive estate planning becomes essential. Here are steps you can take:
Why California Probate and Trust, PC?
At California Probate and Trust, PC, we understand that California families managing assets in an increasingly complex global economy need more than basic estate planning documents. You need a comprehensive strategy that protects your family’s wealth regardless of shifting international trade winds.
Our Sacramento-based team offers:
Take Action to Protect Your Family’s Future
Don’t wait until market volatility or policy changes impact your estate. Schedule your free consultation with California Probate and Trust, PC today to review how international economic developments may affect your family’s financial security.
Call (866)-674-1130 or visit cpt.law to schedule your complimentary estate planning consultation.
Legal Disclaimer
This article is provided for informational purposes only and does not constitute legal advice. The information presented is based on publicly available news sources and general estate planning principles. International trade policy, tax law, and estate planning regulations are subject to change and vary based on individual circumstances. Readers should not rely on this article as a substitute for professional legal counsel. For specific advice regarding your estate planning needs, international asset protection, or trust administration, please consult with a qualified California estate planning attorney. California Probate and Trust, PC is available to provide personalized legal guidance tailored to your unique situation. No attorney-client relationship is created by reading this article or visiting our website.