New Delhi | February 5, 2026
Global Markets Braced as India-US Trade Pact Finalised and New START Treaty Expires
By thehindu24 News Desk
The global geopolitical landscape reached a critical juncture today as the United States and India officially formalised a landmark trade agreement, while the world’s last remaining nuclear arms control treaty between Washington and Moscow lapsed into history.
The India-US Trade Deal: A New Economic Era?
Following months of high-stakes negotiations, the India-US Trade Deal has been signed, establishing a fixed 18% tariff structure for a vast array of Indian exports.
U.S. President Donald Trump hailed the agreement as a “massive victory for American workers,” claiming it addresses long-standing trade imbalances. In India, Union Minister Piyush Goyal emphasised that while the deal secures market access, the government has remained firm on protecting the dairy and agricultural sectors. However, domestic critics have raised concerns regarding the deal’s impact on India’s “strategic autonomy,” particularly concerning energy imports and the ongoing procurement of Russian oil.
The Collapse of Nuclear Diplomacy
In a move that security experts warn could trigger a new arms race, the New START (Strategic Arms Reduction Treaty) has officially expired today. With no extension in sight and relations between the White House and the Kremlin at a historic low, there are now no legal limits on the world’s two largest nuclear arsenals for the first time in decades.
This expiration coincides with heightened tensions in the Middle East. Indirect nuclear talks in Oman are reportedly on the verge of collapse, leading to a surge in global oil prices as the risk of military escalation between the US and Iran intensifies.
Justice in the Florida Assassination Plot
In a significant legal development from the US, Ryan Routh was sentenced to life in prison for the 2024 attempt on Donald Trump’s life at a Florida golf course. The sentencing comes at a time when the President is increasingly focused on isolating Tehran and restructuring international trade alliances.
Corporate Fallout
The trade announcements have already sent ripples through the Bombay Stock Exchange (BSE). While some manufacturing sectors saw a lift, Indian IT giants like TCS and Infosys faced a sharp sell-off. Analysts attribute this not just to trade policy, but to the launch of Anthropic’s latest AI workplace suite, which investors fear may aggressively automate tasks previously handled by Indian SaaS providers.
Should we expand this article with a dedicated “Impact Analysis” section for Indian small-to-medium enterprises (SMEs) under the new 18% tariff?
