Tariff Weekly: February 07 - February 13, 2026

Introduction

This week in trade and tariffs has been marked by several notable developments that could reshape international relations and domestic markets. From new trade agreements to tariff controversies, the landscape is evolving rapidly. Key events include the U.S.-India trade deal, tariff adjustments involving Bangladesh, and ongoing political maneuvering surrounding President Trump's tariff policies.

Significant Developments

U.S.-India Trade Agreement

On February 7, a new trade agreement between the U.S. and India was announced, allowing tariff-free access for Harley-Davidson motorcycles. This is a significant victory for American manufacturers, although Tesla was not granted similar relief, which could hinder its competitiveness in India.

Tariff Policies and Political Maneuvering

Former President Trump signed an executive order that could impose 25% tariffs on countries trading with Iran, further complicating global trade dynamics.

In domestic politics, the House of Representatives is delaying a vote on tariffs related to Canada, reflecting growing discomfort within the Republican party regarding Trump's tariff policies. This delay could have far-reaching implications for U.S.-Canada trade relations.

Trade Agreements and Economic Implications

The U.S. finalized a reciprocal trade agreement with Bangladesh, reducing tariffs for American goods and focusing on labor rights and environmental protections. Additionally, a significant trade pact was signed with Taiwan, eliminating 99% of tariff barriers for U.S. exports, which is expected to bolster economic ties and resilience in high-tech sectors.

Global Trade Dynamics

In South Africa, Eskom Holdings received approval for a tariff increase, impacting energy costs for consumers and businesses, which may contribute to inflation in the region.

Despite U.S. tariffs, the European Union has seen an increase in exports to the U.S., and Chinese companies are actively seeking new markets in Europe, highlighting the interconnected nature of global trade.

Trends and Implications

The ongoing tariff discussions and trade agreements underscore a broader trend of strategic adjustments in response to economic pressures and political challenges. The impact of tariffs on inflation is being closely monitored, with some economists suggesting that their inflationary effects may be diminishing, possibly opening the door for the Federal Reserve to lower interest rates.

However, the Federal Reserve Bank of New York revealed that nearly 90% of the tariff burden fell on U.S. companies and consumers in 2025, contradicting claims that foreign exporters would bear the costs. This has sparked a renewed debate on the sustainability of tariff revenues and their impact on the U.S. economy.

Conclusion: Key Takeaways

• The U.S. is actively pursuing trade agreements that could enhance market access and economic ties, particularly with India and Taiwan.
• Domestic political challenges are influencing tariff policies, with increasing scrutiny from within the Republican party regarding Trump's approach.
• The interconnectedness of global trade is becoming more apparent, with shifts in markets and trade flows in response to U.S. tariffs.
• As economic conditions evolve, the potential for tariff adjustments remains a key area to watch, particularly in light of upcoming midterm elections.

Overall, this week highlights the complex interplay between trade agreements, tariff policies, and the broader economic landscape, setting the stage for further developments in the weeks to come.