U.S. President Donald Trump speaks with journalists prior to boarding Air Force One at Shannon Airport in Shannon, Ireland, on September 13, 2026.
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U.S. President Donald Trump. File
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U.S. President Donald Trump. File
| Photo Credit: Reuters

U.S. President Donald Trump in the Oval Office at the White House in Washington, D.C., U.S., on June 29, 2026.
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President Donald Trump waves as he walks into the North Portico at the White House, on June 28, 2026, in Washington.
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President Donald Trump. File
| Photo Credit: AP

U.S. President Donald Trump. File
| Photo Credit: Reuters

New Delhi:

India’s diplomacy stands out globally for its ability to balance ties between adversaries. The latest example of this is happening this week. As foreign minister S Jaishankar touches down in New Delhi after a five-day visit to the US for Donald Trump’s inauguration, foreign secretary Vikram Misri heads to China to foster ties with Beijing.

Just ten days ago, during a visit to Spain, foreign minister S Jaishankar had said India is one of the very few countries in the world that can engage both Russia and Ukraine, as well as Israel and Iran. “This is something very, very unique. And it is unique because if you look at the world today, it is a very polarised world,” he said.

Donald Trump has threatened to impose hefty tariffs on China and even the BRICS+ countries, which India is a member of as well. China, the world’s second-largest economy, has warned that it will retaliate, should Washington actually follow through. President Trump has also targeted China over its presence in the Panama Canal and said the US will take control of the waterway even if it means involving the military. China, on the other hand, has warned Washington over its involvement with Taiwan. Both nations have sanctioned each other.

ENGAGING ALL SIDES

Amid all this, India, which according to PM Modi, has “always chosen the side of peace”, aims to engage all sides for positive and constructive outcomes. Earlier this week, S Jaishankar strengthened India-US bilateral ties when he met the US Secretary of State and National Security Adviser for their first foreign engagements after the Trump administration took over. As PM Modi’s special envoy, Dr Jaishankar was also given the first seat at the US President’s inauguration.

As he returned after concluding “a very positive” visit to Washington, India’s foreign secretary heads to Beijing to build the momentum in India-China ties following a meeting between PM Modi and Chinese President Xi Jinping in Russia late-last year. Foreign Secretary Misri’s visit was preceded by a visit by National Security Adviser Ajit Doval last month when he met Chinese foreign minister Wang Yi.

REBUILDING AFTER THE STORM

India and China, two of Asia’s leading economies and the world’s most populous nations, are working to boost bilateral ties after a four-and-a-half-year-long military standoff along the Line of Actual Control or LAC brought ties to a grinding halt. After dozens of rounds of talks – both diplomatically and militarily – an agreement was reached and troops on both sides pulled back from the buffer zones, returning the status quo-ante. This happened within a week of PM Modi and Xi Jinping announcing it during a meeting in Russia late last year. Following this, Chinese and Indian foreign and defence ministers also met each other on multilateral occasions.

After Ajit Doval, foreign secretary Vikram Misri’s will be the second high-level visit by an Indian official to Beijing in a month.

A WELCOME FROM BEIJING

China has welcomed Foreign Secretary Vikram Misri’s visit this weekend and sounded positive about its outcome. “We welcome Foreign Secretary Shri Vikram Misri’s travel to China for the meeting of the Foreign Secretary-Vice Minister mechanism between China and India,” Chinese Foreign Ministry Spokesperson Mao Ning said.

India’s Ministry of External Affairs also said that “Foreign Secretary Vikram Misri will be visiting Beijing on January 26 and 27 for a meeting of the Foreign Secretary-Vice Minister mechanism between India and China. The resumption of this bilateral mechanism flows from the agreement at the leadership level to discuss the next steps for India-China relations, including in the political, economic, and people-to-people domains.”

THE AGENDA

Besides bilateral issues such as boundary talks, maintaining peace along the LAC, the building of the world’s largest dam on the Brahmaputra, resumption of the Kailash Mansarovar Yatra, people-to-people ties, resuming direct flights between the two countries, and facilitate the issuance of visas to Chinese citizens, the two sides are also likely to touch upon issues of mutual global interest.

“All matters of mutual interest will be discussed,” the foreign ministry said at a press briefing in New Delhi ahead of the foreign secretary’s visit.

The BRICS+, where both countries are threatened with massive tariffs, might figure in talks as well, as would the latest sanctions threat to countries dealing with Russia and buying Russian oil – again a common threat to both countries. Regional issues such as the situation in the Middle East and in Syria are likely to be discussed too.

US backing out of the Paris Climate agreement and the WHO, as well as the much-needed reform of the United Nations and the Security Council are likely to be discussed as well.

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Washington DC:

Indicating the importance Washington gives to New Delhi as the new Trump administration takes office, US Secretary of State Maro Rubio and National Security Adviser Mike Walz held their first bilateral and international meets respectively with India’s External Affairs Minister S Jaishankar.

Foreign Minister S Jaishankar is in Washington at the invitation of the US Government to attend the inauguration of Donald Trump as the 47th president of the United States. The meeting between the two top diplomats representing the world’s oldest and largest democracies took place at the Foggy Bottom headquarters of the US State Department. The bilateral meeting was preceded by the first Quad ministerial meet after Donald Trump became President.

NEW US SECRETARY OF STATE’S FIRST BILATERAL MEETING

Marco Rubio’s decision to have his first bilateral meeting with India’s S Jaishankar assumes significance given that the first foreign outreach of any previous new US administration traditionally has been with its two neighbours Canada and Mexico, or with one of its NATO allies.

The bilateral meeting between new US Secretary of State Marco Rubio and Dr Jaishankar comes less than an hour after the former officially took office. The two leaders held wide-ranging discussions during which they delved into the entire gamut of the India-US strategic partnership. The meeting, which lasted for over an hour, also had India’s Ambassador to the US, Vinay Kwatra, being part of it.

Immediately after the meeting, Secretary Rubio and Dr Jaishankar made a joint appearance before the international press, where they shook hands and posed for the official photographs.

“Delighted to meet @secrubio for his first bilateral meeting after assumption of office as Secretary of State. Reviewed our extensive bilateral partnership, of which @secrubio has been a strong advocate. Also exchanged views on a wide range of regional and global issues. Look forward to closely working with him to advance our strategic cooperation,” Dr Jaishankar wrote on social media platform X shortly after the meeting.

Delighted to meet @secrubio for his first bilateral meeting after assumption of office as Secretary of State.

Reviewed our extensive bilateral partnership, of which @secrubio has been a strong advocate.

Also exchanged views on a wide range of regional and global issues.

Look… pic.twitter.com/NVpBUEAyHK

— Dr. S. Jaishankar (@DrSJaishankar) January 21, 2025

NEW TRUMP ADMINISTRATION’S MAIDEN QUAD MEET

Immediately before the two leaders met for bilateral talks, they joined their counterparts Penny Wong from Australia and Iwaya Takeshi from Japan for the new Trump administration’s maiden Quad meeting – a diplomatic and security partnership set up by the four nations to maintain peace and freedom of navigation under a rules-based order in the Indo-Pacific region.

The meeting between the four top leaders went on for more than an hour, at the end of which they appeared before the press for a customary photograph. They however, did not take any questions or give any statement.

“Attended a productive Quad Foreign Ministers’ Meeting today in Washington DC. Thank @secrubio for hosting us and FMs @SenatorWong and Takeshi Iwaya for their participation,” Dr Jaishankar wrote, adding that it is “Significant that the Quad FMM took place within hours of the inauguration of the Trump administration. This underlines the priority it has in the foreign policy of its member states. Our wide-ranging discussions addressed different dimensions of ensuring a free, open, stable and prosperous Indo-Pacific.”

Attended a productive Quad Foreign Ministers’ Meeting today in Washington DC. Thank @secrubio for hosting us and FMs @SenatorWong & Takeshi Iwaya for their participation.

Significant that the Quad FMM took place within hours of the inauguration of the Trump Administration. This… pic.twitter.com/uGa4rjg1Bw

— Dr. S. Jaishankar (@DrSJaishankar) January 21, 2025

He further noted that the four leaders “Agreed on the importance of thinking bigger, deepening the agenda and intensifying our collaboration. The meeting today sends a clear message that in an uncertain and volatile world, the Quad will continue to be a force for global good.”

MEETING WITH NEW US NSA MIKE WALZ

After these two meetings, Dr Jaishankar held another top meeting – with new US National Security Adviser or NSA Mike Walz. For Mr Walz too, this was his first international meeting since taking office earlier that same day. The meeting took place at the White House.

“Great to meet NSA @michaelgwaltz again this afternoon. Discussed strengthening our friendship to ensure mutual benefit and enhance global stability and prosperity. Looking forward to working together on an active and outcome oriented agenda,” Dr Jaishankar said after the meeting.

Great to meet NSA @michaelgwaltz again this afternoon.

Discussed strengthening our friendship to ensure mutual benefit and enhance global stability and prosperity.

Looking forward to working together on an active and outcome oriented agenda.

pic.twitter.com/LUlc1WBbWm

— Dr. S. Jaishankar (@DrSJaishankar) January 21, 2025

On Monday, External Affairs Minister S Jaishankar was seen in the front row as US President Donald Trump delivered his inaugural address at the Capital Rotunda in Washington DC. Dr Jaishankar said it was a “great honour” to attend the ceremony as India’s special envoy. He also met members of the new Trump administration, including the 56th Speaker of the US House of Representatives Mike Johnson, Senate Majority Leader John Thune and nominee for the Director of the Federal Bureau of Investigation (FBI) Kash Patel.

He also exchanged a handshake with Vivek Ramaswamy, who quit the newly-formed Department of Government Efficiency to possible pursue the race for Ohio Governor.
 

Washington DC:

Donald Trump has sniffed trouble brewing afar against the United States – one that may topple the US’s position as a dominant global power and end Washington’s ability to impose economic sanctions against those it deems fit for the case. The storm in question is the steadily-expanding BRICS+ grouping.

Within hours of taking office as President of the United States, Donald Trump went after the BRICS+, threatening to impose 100 per cent tariffs on member countries. The reason Washington feels threatened by the grouping is because it makes the US dollar, America’s greatest weapon – one it can actually use, vulnerable.

In recent times there have been reports of a possibility of the BRICS+ nations working on a common currency which would replace the US dollar for international trade. The founding members of the BRICS are Brazil, Russia, India, China, and South Africa – the acronym of which is BRICS. Over the years, several other countries have become members of the bloc, namely Egypt, Ethiopia, Iran, the United Arab Emirates (UAE), and Indonesia. Saudi Arabia has accepted the membership, but has not formally joined yet, saying that the matter is under consideration.

BRICS+, which is shaping up to be the developing world’s alternative to the West-led G7, has set up its own financial structure and institutions, and is cooperating economically and diplomatically to reduce its dependence on the US Dollar – the default currency for international trade.

Donald Trump has now said his administration will impose 100 per cent tariffs against countries of the BRICS+ bloc, should they take any steps to replace the US dollar. “If the BRICS nations want to do that (replace the US dollar), that’s okay, but we’re going to put at least a 100 per cent tariff on the business they do with the United States,” President Trump told the international media shortly after his presidential inauguration.

“They will have a 100 per cent tariff if they so much as even think about reducing the use of the US Dollar in global trade,” he threatened.

Less than a month before he took office, Mr Trump had made a similar reference warning the BRICS+ countries. “We require a commitment from these countries that they will neither create a new BRICS currency, nor back any other currency to replace the mighty US dollar or, they will face 100 per cent tariffs and should expect to say goodbye to selling into the wonderful US economy,” Donald Trump, then President-elect, had warned in December.

HOW THE US DOLLAR IS WEAPONISED IN SANCTIONS

The US Dollar, has for decades, been the world’s principal reserve currency. It has been the case since the Second World War, following which global institutions like the United Nations, World Bank, and International Monetary Fund, among many others were set up. All these institutions were set up in the United States – And America being the largest trading country of the world at that time led to US Dollar becoming the default currency for global trade.

In 1973, a new system was set up to moderate international transactions. This system is known as SWIFT, which is short for Society for Worldwide Interbank Financial Telecommunication. Since then, this has become the world’s commonly accepted and standardised model for international money transfers.

According to its website, SWIFT is a member-owned cooperative connecting more than 11,000 banks, financial institutions and corporations in more than 200 countries and territories. SWIFT is neither a payment nor a settlement system, and is therefore is not regulated as such by any of the world’s central banks.

SWIFT is overseen by the central banks of G10 nations – namely, Belgium, Canada, France, Germany, Italy, Japan, The Netherlands, United Kingdom, United States, Switzerland, and Sweden.

Since the US Dollar is the default currency of trade globally, and SWIFT is the method or channel of settlement, sanctions are imposed by controlling these two. Sanctions are imposed via SWIFT by restricting access to the network or completely prohibiting individuals, institutions, and countries from using its services. When sanctions are imposed, it completely freezes an account and restricts any further transactions from it.

SWIFT sanctions can freeze any bank’s ability to transact with the rest of the world. Under an international rules-based order, much of the global financial governance is dominated by the US-led West.

MULTI-POLAR WORLD

In the 21st Century, with the rise of Asia, and economies like China, India, Russia, Indonesia, UAE, Saudi Arabia, and others, the world has become much more multi-polar, instead of being bipolar – which was the case during the Cold War between the US and USSR through much of the 20th Century, post the two world wars in the first half of the century.

Brazil in South America and South Africa in Africa were also rising global economies.

With time, emerging economies became increasingly disgruntled with the dominance of the US Dollar being the default in almost all global transactions. This also kept them under a constant threat of Western sanctions, should they not two the line. To deal with this, BRICS leaders have for long reportedly advocated for de-dollarisation, and been in favor of increased trade in local currencies and even reportedly explored the possibility of a potential common BRICS currency.

The BRICS members have even set up the New Development Bank (NDB) and the Contingent Reserve Arrangement or CRA – which act and function exactly like the World Bank and the International Monetary Fund or IMF, respectively.

The so-far 10-member BRICS+ grouping already comprises nearly half of the world’s population and over a third of the global economy. It also has more than 25 per cent of the world’s landmass, produces more than 30 per cent of the world’s oil output and is on track to surge ahead of the G7 economies in less than 20 years.