India aims to improve trade relations with US, Russia, and China

Trade tensions between the US and India continue to grow, as US President Donald Trump has revealed more about the souring relations between the two nations. According to AL24 News via Reuters on September 1st, Trump stated that India had proposed reducing its tariffs on US goods to zero.

This is despite pressure on New Delhi from Washington due to India’s relations with China and Russia. Indian Prime Minister Narendra Modi was publicly pictured with Chinese and Russian leaders, signalling a defiance of US trade pressure.

Trump commented on his Truth Social platform, saying that India has “now offered to cut their tariffs to nothing, but it’s getting late. They should have done so years ago.” He also labelled the relationship between the US and India as “one sided,” on India’s part. The Indian Embassy in Washington did not respond to these comments.

Tensions between the US and India stemmed after Trump’s increase of US tariff rates on Indian goods up to 50%, which was enforced on August 27th. This was a move made to punish India for their purchase of Russian Federation oil. India has responded with proposed plans to increase the imports of Russian oil.

As trade relations with the US unravel, India is pivoting toward stronger partnerships with alternative allies. India and China are planning to resume border trade for the first time in five years. Additionally, India and Russia have strengthened trade relations, with the trade turnover between the two nations reaching unprecedented levels. Russia has signalled its willingness to increase oil deliveries to India.

Trump’s remark followed Modi’s arrival in China for a summit, which was attended by over 20 leaders of non-Western countries of the Shanghai Cooperation Organisation. Modi, alongside Russian President Vladimir Putin and Chinese President Xi Jinping, were seen holding hands and laughing before the summit, indicating the blossoming relations that have materialised between them.