Trump Tariffs: India and China Strengthen Cooperation

Indian Prime Minister Narendra Modi's visit to China, his first in seven years, signals a strengthening of diplomatic relations between the two countries amid rising tensions with the United States.

Modi will attend the Shanghai Cooperation Organisation (SCO) summit in Tianjin in late August. This move comes as India-US relations face a crisis, following President Donald Trump's imposition of higher tariffs on imports from India.

The White House announced additional tariffs of 25% on India, bringing the total to 50%, in response to New Delhi's import of Russian oil. Trump stated that India imports oil from the Russian Federation, justifying the imposition of tariffs.

Modi's visit to China and talks with Chinese President Xi Jinping on the sidelines of the BRICS summit in October have led to a gradual de-escalation of tensions between the two countries.

Meanwhile, India's National Security Advisor, Ajit Doval, is in Russia for talks on Russian oil purchases and defense cooperation.

American and Indian officials report that negotiations on trade agreements have stalled, with India estimating that Trump's tariffs could cost it a competitive advantage on goods worth approximately $64 billion.

Despite the uncertainties, the Reserve Bank of India has kept its GDP growth forecast unchanged at 6.5%.

Source: ot.gr