In a dramatic turn of events on the global stage, U.S. President Donald Trump has imposed a new set of tariffs on India — and it may be pushing India closer to China.
On Wednesday, Trump signed an executive order slapping an additional 25% tariff on Indian goods, bringing the total tariff rate on imports from India to a staggering 50%. This is one of the highest tariffs the U.S. has ever imposed on a friendly nation.
Why the Tariffs?
The reason? India has been buying discounted oil from Russia, even as the U.S. continues to press countries around the world to cut ties with Moscow over the war in Ukraine.
Trump, in his statement, accused India of undermining U.S. efforts to stop Russia’s aggression. “India doesn’t care how many people in Ukraine are being killed,” Trump said in a sharply worded comment earlier this week.
He made it clear that these new tariffs are a warning to other countries, especially those still doing business with Russia.
🇮🇳 India Responds: “Unfair and Unjustified”
India’s foreign ministry responded quickly. In a short but firm statement, the ministry called the move “unfair, unjustified, and unreasonable.”
They reminded the U.S. that many countries are buying oil from Russia to protect their own national interests—and India is no different. They also pointed out that Washington itself has continued some trade with Russia despite tough sanctions.
India said it will take “all actions necessary” to protect its own interests.
Modi’s Next Move: Heading to China
As this diplomatic tension rises between the U.S. and India, Prime Minister Narendra Modi is making headlines with a major move of his own — one that many are calling a clear signal to Washington.
After seven years, Modi is expected to attend the Shanghai Cooperation Organisation (SCO) summit in China, scheduled for August 31–September 1.
This will be Modi’s first trip to China since the deadly 2020 Galwan Valley clashes, where Indian and Chinese soldiers faced off in a violent border conflict.
🧭 A Shift in Global Strategy?
While official sources say Modi’s visit is part of regular diplomatic cooperation, the timing is raising eyebrows.
Just days after the U.S. raised tariffs, India seems to be re-engaging with China, a rival superpower and strategic competitor to the U.S.
Political experts say this could be a calculated move — a reminder to Washington that India has options and is willing to look elsewhere if its trade relationship with the U.S. is strained.
🧱 India–China Relations: A Slow Repair
The visit also signals a slow mending of India–China relations, which hit rock bottom after the Galwan clashes.
Since then, both countries have quietly worked to rebuild trust. In October 2024, Modi met Chinese President Xi Jinping in Russia. Since that meeting:
Special dialogue channels between India and China have reopened
The Kailash Mansarovar Yatra, a sacred pilgrimage, has resumed
India has started issuing visas to Chinese tourists again
Talks are ongoing to restart direct flight services
In the last few months, top Indian leaders — including Defence Minister Rajnath Singh, External Affairs Minister S. Jaishankar, and National Security Advisor Ajit Doval — have all visited China for SCO-related meetings.
🌐 What Is the SCO?
The Shanghai Cooperation Organisation (SCO) is a powerful regional alliance that focuses on security and economic cooperation. It includes major nations like:
China
Russia
India
Pakistan
Iran
Kazakhstan
Uzbekistan
Kyrgyzstan
Tajikistan
Belarus
India joined the SCO in 2017. The group has gained more global importance in recent years, especially as tensions rise between the West and countries like Russia and China.
China is the current chair of the group, and the upcoming summit will be held in Tianjin, China.
Will Modi Meet Xi and Putin?
It is not yet confirmed whether Modi will hold a separate meeting with President Xi Jinping during the summit. But the possibility is real — and so is a potential meeting with Russian President Vladimir Putin, who is also expected to attend.
Such meetings, even informal, could help India balance its diplomatic ties as it navigates an increasingly complicated world.
What This Means for India
India now finds itself in a tough spot. On one side, it values its strategic partnership with the U.S., especially for trade and defense. On the other, it depends on affordable energy from Russia, and it wants to avoid a full-scale conflict with China.
By re-engaging with China through the SCO, India is showing the world that it won’t be pushed around by any one power.
As one former Indian diplomat put it: “India is not choosing sides. It’s choosing itself.”
🔮 What’s Next?
The new tariffs will take effect on August 27. Modi’s trip to China will follow just a few days later.
Whether this is a coincidence — or a strategic message to the U.S. — remains to be seen.
But one thing is clear: Trump’s tariff gamble may have opened a new chapter in Asian diplomacy — one where India plays the balancing act between East and West with bold new moves.