US Concerned by India’s New Alignments with China and Russia
The United States has exhibited significant concerns following India’s strategic turn towards China and Russia, with President Donald Trump characterizing it as an alignment with the ‘darkest and deepest’ elements. This move stirs up more ambiguity around the discussions occurring for a bilateral trade agreement between India and the US, and raises several questions about the future of the heavy 50% American tariffs on Indian exports.
President Donald Trump used an image, originally captured at the recent SCO Summit in China, to express his concerns. The picture depicted Chinese President Xi Jinping, Russian President Vladimir Putin, and Indian Prime Minister Narendra Modi walking side by side. The President commented, ‘It appears we’ve lost India and Russia to the deep, dark China. May their joint future bring prosperity and longevity!’
Trump’s tone turned significantly severe when he referenced the issue of tariffs, firmly asserting that India would be motivated to alter its behavior and return to American alignment by the punitive tariffs. Trump stated that if India did not align its actions with US interests, the hefty 50% tariff on Indian goods would continue to apply.
The United States administration implemented 25% reciprocal tariffs against Indian goods, beginning from August 7. This action was in response to India maintaining high tariffs on US products. However, things escalated when this tariff was ramped up to 50% on August 27, a step taken to chastise India for their decision to purchase oil from Russia, allegedly contributing to Russia’s conflict with Ukraine.
The ramifications of these tariffs have had a considerable impact on the economy of India, particularly on its export sector. These tariffs affected Indian goods worth an annual estimate of $60 billion that were exported to the US. This has inevitably affected several labor-oriented sectors within India, including textiles, leather, and jewelry
The response to these recent developments from the Indian side remains to be seen. The Ministry of External Affairs of India held a meeting on the previous Friday but did not comment on the increasing US pressure.
The spokesperson for the Indian Ministry did, however, reject certain assertions surrounding the profits made from the Russian oil trade by Indian ‘Brahmins.’ The ministry representative branded these substantive claims as ‘misleading’ and ‘inaccurate.’