Indian PM Modi Meets Putin and Xi Jinping After US Imposes 50% Tariffs on India

Tianjin, China — Indian Prime Minister Narendra Modi struck a visibly warm chord with Russian President Vladimir Putin and Chinese President Xi Jinping at a major regional gathering on Monday, days after the United States shocked New Delhi with sweeping new trade tariffs. Modi’s presence at the Shanghai Cooperation Organization (SCO) summit in Tianjin marked his first trip to China in seven years, underscoring both the strategic weight of the visit and the shifting balance of global alliances.

Modi Strengthens Asian Partnerships Amid Trade Rift With US

The SCO summit offered a high-profile stage for Modi to showcase his country’s ties with both Russia and China at a time when relations with Washington have entered rough waters. Last week, U.S. President Donald Trump announced a 50% tariff hike on Indian exports, particularly targeting textiles, pharmaceuticals, and auto parts. The move rattled sectors of India’s $450 billion export economy and sparked concerns about long-term access to one of its largest markets.

In Tianjin, Modi not only participated in group sessions but also held separate bilateral talks with both Putin and Xi. Observers described his interactions as notably warm and deliberate, in clear contrast to the terse back-and-forth with Washington in recent weeks.

“Conversations with him are always insightful,” Modi said of Putin after their closed-door meeting. The Russian leader responded in kind, calling Modi a “dear friend” and highlighting the long-standing “friendly and trusting” relationship between their nations. Modi also spent time with Xi, who described their dialogue as constructive, emphasizing the importance of India-China cooperation for “stability and prosperity in Asia.”

SCO Summit: Unity Against Global Tensions

The SCO, founded in 2001 and often described as a Eurasian security and economic bloc, has become an increasingly important counterweight to U.S. influence in Asia and beyond. Members include China, Russia, India, Pakistan, and several Central Asian states. The Tianjin summit put trade, energy, and security high on the agenda.

Xi Jinping’s keynote address at the summit contained a pointed rebuke of “bullying behavior” by unnamed countries. While he did not directly reference the United States, the language drew attention given the recent trade actions against both China and India.

For India, participation in the SCO has provided a platform to bridge relations with two of its largest neighbors — China and Russia — while leveraging regional ties to hedge against overreliance on the West. Modi leaned into this narrative in Tianjin, reiterating that India seeks to be a “partner” rather than “rival” to China, a message aimed at cooling the border tensions that have defined much of the bilateral relationship in recent years.

The 50% Tariff Shock: Historical Context and Impact

The American tariff hike on India marks one of the most severe blows in the modern history of U.S.-India trade ties. While disputes over market access, intellectual property, and labor protections have simmered for years, the sudden imposition of a blanket 50% tariff represents a dramatic escalation.

Historically, the U.S. and India have oscillated between partnership and tension in trade negotiations. In the early 2000s, Washington supported India’s global integration through initiatives like the U.S.-India Civil Nuclear Agreement and expanded defense cooperation. But recurring disputes over agricultural subsidies, medical devices, and digital trade issues have repeatedly stalled progress.

The tariff announcement caught many Indian businesses off guard. Analysts warn of significant repercussions for India’s economy:

• Textiles and garments, a labor-intensive sector employing millions, face sharp cuts in U.S. demand.
• Pharmaceuticals, where India is a major supplier of generic medicines to American consumers, could see price increases and stalled exports.
• Auto parts and machinery industries risk severe contractions in order volumes.

The Federation of Indian Export Organizations estimates potential losses in the range of $12–15 billion annually if the tariffs remain in place. Economists also fear secondary effects, including layoffs in industrial hubs like Surat and Ludhiana, as well as reduced foreign investment confidence.

Global Comparisons: Trade Struggles in Asia

India’s current predicament is not unique. China faced similar tariff actions during the U.S.-China trade war of 2018–2019, which disrupted global supply chains and pushed Beijing to accelerate diversification toward domestic markets and non-U.S. partners. Russia, isolating under Western sanctions since 2014 over its annexation of Crimea, has also deepened economic engagement with Asia, particularly China.

By strengthening its partnerships with both Putin and Xi at this juncture, Modi appears to be following a path seen elsewhere in Asia — seeking to insulate national growth from the volatility of Washington’s trade policy. Other countries in the region, such as Vietnam and Indonesia, have also doubled down on intra-Asian cooperation in response to escalating U.S. tariffs and restrictions.

Trump’s Response: A Firm Warning to India

In remarks made shortly after images of Modi with Xi and Putin circulated worldwide, President Trump dismissed concerns that the new tariffs would hurt American consumers. Instead, he framed India as overly dependent on U.S. markets.

“What few people understand is that we do very little business with India, but they do a tremendous amount of business with us,” Trump said. He insisted that the U.S. is India’s “biggest client,” implying that the economic leverage lies in Washington’s favor.

He further claimed that India had already offered to reduce tariffs “to nothing,” but argued the effort was “too late.” The comments underscored Trump’s determination to push ahead with his protectionist trade agenda, regardless of the diplomatic fallout.

Modi’s Diplomatic Balancing Act

India faces the dilemma of retaining its crucial partnership with the U.S. — a key defense supplier and emerging technology collaborator — while simultaneously reinforcing ties with Russia and China. Modi’s recent diplomatic calendar highlights this balancing act:

• Last month, India’s national security adviser traveled to Moscow.
• The Indian foreign minister met Russian officials just last week.
• Chinese Foreign Minister Wang Yi visited New Delhi in mid-August, part of ongoing high-level dialogue to stabilize the fraught relationship.

These gestures point to a deliberate effort by New Delhi to prepare fallback options should trade with Washington further sour. Modi is also expected to travel to Moscow later this year at Putin’s invitation, deepening the optics of India’s Eurasian orientation.

Economic Alternatives and Risks

One key question is whether India can effectively pivot away from U.S. markets. While Russia provides energy partnerships and China offers manufacturing and supply chain links, neither country provides the scale of consumer demand found in the U.S. market.

Moreover, India has long sought to court Western investment to accelerate its “Make in India” initiative, aimed at transforming the country into a global manufacturing hub. A deterioration in U.S. ties could jeopardize progress in sectors like information technology outsourcing, aerospace, and defense collaboration.

However, India has undeniable leverage of its own — a rapidly growing domestic consumer base, increasing expertise in renewable energy and technology services, and its role as a counterbalance to China in the Indo-Pacific strategic framework. Modi’s task will be to reassure both Western and Asian partners that India is not tilting exclusively in one direction but instead pursuing a multi-aligned strategy consistent with its national interests.

Public and Market Reactions

In India, the tariff announcement has sparked concern among manufacturers, exporters, and economists. Business associations have urged the government to pursue a negotiated settlement with Washington while simultaneously pressing for trade deals with other markets, including the European Union and Africa.

The Indian rupee weakened slightly against the dollar following the tariff news, and stock exchanges saw volatility in industries tied closely to U.S. exports. At the same time, reports of Modi’s warm receptions in Tianjin were widely broadcast on domestic television, where analysts praised the optics of India not appearing isolated despite U.S. pressure.

Meanwhile, in American markets, businesses reliant on low-cost imports of pharmaceuticals and textiles from India expressed worry about higher costs being passed on to consumers. Some small retail associations warned that price increases on everyday items could arrive sooner than expected.

Looking Ahead: A Test of Strategic Patience

As Modi departs Tianjin, India’s foreign policy enters a decisive phase. The path forward could hinge on whether the tariff dispute with Washington escalates into a prolonged trade war or gets resolved through negotiation. Equally important will be how far New Delhi is willing to move closer to Beijing and Moscow without alienating its democratic allies in the West.

For the moment, Modi’s carefully choreographed meetings with Putin and Xi sent a powerful symbolic message: India will not face Washington’s tariff barrage in isolation, but instead seeks to anchor itself in a network of Asian partnerships. The success of this strategy, however, will depend on India’s ability to manage the competing pressures of economics, diplomacy, and national security in an increasingly unpredictable world.

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At a time when global trade alignments are shifting rapidly, the Tianjin summit may emerge as a turning point in India’s foreign relations. Modi’s balancing act — between reinforcing traditional ties with Russia and China and seeking reconciliation with the United States — encapsulates the complexities of today’s multipolar world. The next moves in this high-stakes game of diplomacy will likely determine not only India’s immediate economic future but also its long-term role on the international stage.