Amid growing tariff-induced tensions between India and the US, PM Narendra Modi is slated to visit China for the first time ever since the 2020 Galwan clash, according to media reports.
The visit will focus on key areas such as economic cooperation, pressing geopolitical issues, and regional security under the Shanghai Cooperation Organisation (SCO) Summit.
PM Modi’s China Visit Amid Trump’s 25% Tariff Heat
Prime Minister Modi’s visit to China comes at a crucial juncture for the south Asian country, as US President Donald Trump continues its tariff tactic on India, including the looming penalty for buying Russian oil, and substantial hike in tariff.
Trump on Tuesday reiterated his warning that he will be raising tariff rates on India from the current 25 per cent. In an recent interview to a media outlet, Trump said India is a ‘not a good’ trading partner. Trump reportedly said that he would raising tariffs on India in the next 24 hours. US has imposed a tariff rate of 25% on India which is supposed to be effective August 7, 2025.
“India has not been a good trading partner, because they do a lot of business with us, but we don’t do business with them. So we settled on 25 percent but I think I’m going to raise that very substantially over the next 24 hours, because they’re buying Russian oil,” he said in the interview.
“With India, what people don’t like to say is they have the highest tariffs of anybody. We do very little business with India,” Trump said. “India is not a good trading partner,” he added, before linking India’s continued energy trade with Moscow to the ongoing war in Ukraine.
“They are buying Russian oil and fueling the Russian war machine.” He further indicated that India’s proposal for a ‘zero tariff’ on American imports was insufficient, whilst also asserting that India was “fuelling the war” in Ukraine.
India’s Sharp Response To Trump’s Tariff Tactics
India pushed back against Trump’s threat to “substantially” raise tariffs on Indian goods over its continued oil imports from Russia, calling the targeting of India “unjustified and unreasonable.” In a sharply worded statement, the ministry of external affairs (MEA) defended India’s energy strategy, saying that its crude oil purchases from Russia are “a necessity compelled by global market conditions” and not a political endorsement of Moscow.
“India will take all necessary measures to safeguard its national interests and economic security,” the MEA said in a statement, while pointing out that the US and European Union have themselves continued trade with Russia, including in energy and critical commodities, despite publicly opposing the Ukraine conflict.