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Geopolitical Realignment: US-India Tariff Accord Signals Strategic Economic Convergence

Agency Source: Times of India Bureau Release: February 2, 2026 | 17:16 IST
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In a decisive move reshaping global trade architecture, the United States and India have concluded a bilateral tariff agreement, marking a significant pivot in Indo-Pacific economic strategy. The accord, announced by former President Donald Trump, stipulates a reduction of US tariffs to 18%, reciprocated by India's commitment to lower its corresponding rates to 0%. This development follows closely on the heels of India's landmark trade pact with the European Union, termed the 'mother of all' deals, underscoring New Delhi's assertive multilateral trade diplomacy. While the EU bloc collectively remains India's foremost trading partner, the United States retains its position as the single largest national partner, amplifying the strategic weight of this bilateral understanding. The agreement reflects a calibrated effort to de-escalate longstanding trade tensions and foster supply chain resilience, aligning with broader geopolitical objectives to counterbalance regional influence. This convergence suggests a deliberate recalibration of economic priorities, potentially heralding a new phase of integrated US-India cooperation within the contested Indo-Pacific theater.

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