In early February 2026, India signed major trade deals with the United States and the European Union, shifting leverage against China as New Delhi assumes the BRICS chairmanship. Those agreements aim to deepen market access and reshape regional economic ties.
The US framework announced February 6 will halve American tariffs on Indian goods to 18 percent. Negotiations were led by Jamieson Greer, who said “President Trump’s dealmaking is unlocking one of the largest economies in the world for American workers and producers, lowering tariffs for all U.S. industrial goods and a wide array of agricultural products.”
Days earlier, Delhi and the European Union finalized a comprehensive free trade agreement hailed as the “mother of all deals.” Analyst Ivan Lidarev said “India is likely to gain greater leverage in its relations with China as a result of the trade deals and therefore will be less accommodating to Beijing, particularly on trade and investment issues.”
As India chairs BRICS in 2026, its westward economic tilt complicates coordination within the Beijing-led bloc. Professor Lin Minwang said ties had “hit rock bottom” and were “unlikely to deteriorate further.”
Commerce Minister Piyush Goyal confirmed the deal protects “sensitive agricultural and dairy products.” Prime Minister Narendra Modi said “President Trump’s leadership is vital for global peace, stability, and prosperity. India fully supports his efforts for peace.”
On February 9, 2026, Chinese regulators advised major institutions to reduce US Treasury holdings, prompting yields to rise to 4.25 percent as holdings fell to $682.6 billion in late 2025. Professor Xi Junyang said “The decrease in China’s holdings of the US treasuries is a result of increased optimisation and diversification of holdings of foreign assets seen in recent years, which helps strengthen the overall safety and stability of the portfolio.” (Ed. note: a Xi-Trump meeting is planned for April 2026.)
