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U.S. Tariffs Jolt Relations as Modi Makes First China Visit in Seven Years

Washington's Russia-linked duties are squeezing Indian exporters.

Overview

  • U.S. import taxes on a wide range of Indian goods rose from 25% to 50% on August 27 after a presidential decree on August 6 added an extra 25 percentage points.
  • President Donald Trump and adviser Peter Navarro publicly framed the move as punishment for India "feeding the Russian war machine" through purchases of Russian hydrocarbons.
  • Narendra Modi will attend the August 31–September 1 SCO summit in Tianjin with meetings planned with Xi Jinping and Vladimir Putin, which Indian media portray as a possible strategic recalibration.
  • Chinese state-aligned outlet Huanqiu Shibao warned against casting any India–China thaw as an anti-American alignment, emphasizing both sides' independent foreign policies.
  • Economists say workers in textiles, jewelry and engineering are most exposed to the new duties, even as India reports 7.8% GDP growth and its trade ministry signals support measures soon.