Tariffs and Trade
Donald Trump imposed 25% duties on Indian goods, plus a further 25% linked to India's Russian oil purchases, totaling 50% - among the world's highest tariffs.
Trump accused India of a 'one-sided disaster' trade relationship, stating they sell a lot to the US, while the US sells little to India. This situation is now prompting India to explore trade partnerships with other nations.
SCO Summit Dynamics
Prime Minister Narendra Modi met with Vladimir Putin and Xi Jinping at the Shanghai Cooperation Organisation (SCO) summit. This summit, hosted by Xi Jinping, included 10 member states and 20 leaders. Ed Price points out that US actions give India little choice but to seek other trade partners. This further fuels the discussion about the impact of US policies on international trade.
India-Russia Ties
Trump has repeatedly criticized India for buying discounted Russian crude, accusing India of fueling Russia's attacks on Ukraine. He also mentioned India's reliance on Russian oil and arms. Ed Price argues that if China, Russia, and India form an alliance, the US might not be able to compete. This emphasizes the growing strategic concerns.
US Concerns Arise
Experts are concerned that Trump's tariffs are pushing India towards an alliance with Russia and China. This could lead to a powerful economic and potentially military axis that could reshape the global landscape. Xi Jinping also called on the bloc to 'safeguard regional peace and stability' and 'pool the strength of the Global South.'
