INDIA

U.S. President Donald Trump has canceled his planned August trade trip to New Delhi, which was scheduled for August 25–29, ending talks before they even began – and just one day after his summit with Russian President Vladimir Putin.

Tariffs Push Negotiations Into Deadlock
Trump’s decision immediately froze all progress on a long-discussed trade agreement. Indian exporters lost their last hope of avoiding steep new tariffs. Beginning August 27, increased U.S. duties — reaching as high as 50% on some goods — will take effect, representing one of the harshest trade sanctions imposed on any U.S. partner.
At the center of the dispute is India’s continued import of Russian oil, which Washington has demanded to stop. Earlier this month, Trump slapped an additional 25% tariff on Indian imports. After five failed rounds of talks — bogged down by disputes over opening India’s agricultural and dairy sectors as well as oil deals with Moscow — Washington lost patience.

New Delhi Pushes Back, Points to Double Standards
India’s Ministry of External Affairs condemned the move as unfair, arguing the country is being singled out while the West — including the U.S. and EU — continues trading with Russia. Despite this, Trump pressed forward, leaving Indian exporters bracing for financial pain and long-term uncertainty.
Once seen as one of the strongest partnerships of the past two decades, U.S.–India relations are now sliding into their deepest crisis in years. Meanwhile, Prime Minister Narendra Modi is doubling down on domestic self-reliance.

Modi’s Answer: Self-Reliance
In his Independence Day address, Modi emphasized that India would reduce its dependence on foreign imports. He announced that “Made in India” semiconductor chips will be available by year-end and pledged a sweeping tax reform by October aimed at easing the burden on the middle class and stimulating domestic business.
He also unveiled a new task force to dismantle outdated regulations, cut compliance costs, and remove legal hurdles slowing down entrepreneurship. These steps are part of Modi’s long-running Atmanirbhar Bharat campaign, designed to boost local manufacturing and reduce reliance on global powers. While there have been successes — such as Apple shifting part of its iPhone production to India — foreign investors warn that bureaucracy and sluggish approvals continue to hold back larger progress.

Stalemate With No Clear Way Out
Indian officials insist dialogue remains open. Commerce Minister Sunil Barthwal told reporters that India “remains fully engaged in trade talks with the U.S.” Yet only hours later, the U.S. delegation abruptly canceled its visit without explanation.
Experts say the stalemate is not surprising. “The Americans are making things very difficult for India, and Modi is not someone who backs down,” said C. Raja Mohan of the Institute of South Asian Studies in Singapore. Still, he noted, Modi is pushing his negotiators to remain pragmatic.

#TRUMP , #putin , #India , #TradeWar , #Geopolitics

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Tensions between Washington and New Delhi are escalating. The White House has accused India of directly supporting Russia’s war in Ukraine through purchases of discounted Russian oil. While Prime Minister Narendra Modi strengthens ties with Moscow and Beijing, Donald Trump is responding with harsh tariffs and threats of deeper isolation.

Washington Raises the Stakes
White House advisor Peter Navarro warned that India can no longer pretend to be neutral. In a Financial Times commentary, he argued that New Delhi’s oil deals are “funding Putin’s war machine” and must stop immediately.
Trump has imposed 50% tariffs on Indian goods, saying this is directly linked to India’s ongoing oil imports from Russia. “If India wants to be considered a strategic partner of the U.S., it must start acting like one,” Navarro added.

New Delhi Defies Pressure
Despite sanctions and threats, India’s state-owned Indian Oil Corporation confirmed it will continue purchases as long as they remain economically viable. According to its CFO Anuj Jain, 24% of India’s oil came from Russia in the second quarter of this year, compared to 22% in 2024/2025. Currently, India is securing discounts of about $1.50 per barrel compared to the Dubai benchmark price.

Closer Ties with China
U.S. criticism is also accelerating India’s rapprochement with China. Modi is expected to meet President Xi Jlnping, while Chinese Foreign Minister Wang Yi will visit New Delhi to discuss the ongoing border dispute. This comes just as Trump canceled a planned visit by U.S. trade negotiators, which was supposed to ease tensions and explore a new deal.

A Bloody Week for Ukraine
The standoff unfolds as Ukraine suffers more deadly attacks. In Kharkiv, a Russian drone strike on a residential complex killed seven people, including a one-year-old girl. Three more civilians were killed in Zaporizhzhia. President Volodymyr Zelensky accused Moscow of trying to sabotage his meeting with Trump in Washington.
“Putin is determined to humiliate diplomacy and keep Ukraine and Europe under constant pressure,” Zelensky said.

Trade or Alliance?
The Trump administration is forcing India to make a tough choice – continue reaping the benefits of cheap Russian oil or risk losing a valuable trade partnership with the United States.

#India , #russia , #TRUMP , #Tariffs , #Geopolitics

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Chinese Foreign Minister Wang Yi is set to make an official visit to India next week, in an effort to break the deadlock between the two countries over the long-standing border dispute. During his trip, Wang Yi will meet Indian Foreign Minister Subrahmanyam Jaishankar for bilateral talks, in addition to participating in a session under the Special Representatives Mechanism dedicated to addressing the border issue.

The visit carries significant political and diplomatic weight, as it comes at a time when both nations are seeking common ground to ease tensions, particularly after a series of clashes and confrontations in the Ladakh region in recent years.

Observers believe that the upcoming discussions may serve as a fresh start in rebuilding trust between New Delhi and Beijing, especially given the fast-evolving regional and global dynamics that require greater cooperation despite deep-rooted geopolitical differences.

All eyes are now on the outcomes of this anticipated meeting, and whether it will pave the way for practical steps toward resolving the dispute—or at the very least, reducing tensions to ensure greater stability in the region.

#China #India #WangYi #Jaishankar #InternationalRelations

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