Trump's tariffs on India kick in; China's Xi set to host Modi, Putin in show of solidarity

[US tariff on India import trade war cargo shipping container]
alexsl

President Donald Trump's punitive 25% tariffs on Indian goods took effect on Wednesday, taking the total levy to 50%, among the highest rates imposed by the U.S.

The U.S. imposed the punitive 25% tariff on Indian imports because of India's increased purchases of Russian oil. ING analysts noted that Indian refiners initially paused purchases in response to the tariffs, but have since resumed buying.

An official at India's Commerce Ministry told [https://www.reuters.com/world/india/trumps-doubling-tariffs-indian-imports-takes-effect-hiking-tensions-2025-08-27/] _Reuters _that exporters impacted by the tariffs would receive financial assistance and be encouraged to diversify to markets like China, Latin America and the Middle East.

Meanwhile, China's President Xi Jinping will host more than 20 world leaders convening for a regional security forum next week, in what could be a powerful show of solidarity among countries being targeted by U.S. trade policies.

The Shanghai Cooperation Organization (SCO) summit will be held from August 31 to September 1. Indian Prime Minister Narendra Modi will attend, marking his first visit to China in over seven years, along with Russia's Vladimir Putin.

"Xi will want to use the summit as an opportunity to showcase what a post-American-led international order begins to look like and that all White House efforts since January to counter China, Iran, Russia, and now India have not had the intended effect," said Eric Olander, editor-in-chief of The China-Global South Project, told [https://www.reuters.com/world/china/powerful-optics-chinas-xi-welcome-putin-modi-grand-show-solidarity-2025-08-26/] _Reuters_.

However, geopolitical frictions between member nations could undermine the SCO summit. These include the recent cross-border clashes between core members India and Pakistan, and New Delhi's refusal to join the SCO's condemnation of Israel's attacks on member state Iran.

China and India have faced frequent border disputes for years, with the last deadly military clash happening in 2020. But in the wake of Trump's tariff policies, the two Asian countries have worked towards defusing tensions and boosting trade [https://seekingalpha.com/news/4485116-india-china-in-talks-to-resume-border-trade-amid-us-trade-pressures].

MORE ON CHINA, INDIA

* Commodities: Oil Falls As Indian Secondary Tariffs Come Into Effect [https://seekingalpha.com/article/4817003-commodities-oil-falls-indian-secondary-tariffs-come-into-effect]
* Why China Remains A Value Trap For Investors (MCHI Analysis) [https://seekingalpha.com/article/4815202-why-china-remains-a-value-trap-for-investors-mchi-analysis]
* Chinese trade negotiator heads to US to resume talks - report [https://seekingalpha.com/news/4489275-chinese-trade-negotiator-heads-to-us-to-resume-talks---report]
* Trump warns of 200% tariff on China over rare earths, touts Boeing jets as leverage [https://seekingalpha.com/news/4489031-trump-warns-of-200-tariff-on-china-over-rare-earth-magnets]
* India, Russia to bolster trade ties despite Trump's ire over oil purchases [https://seekingalpha.com/news/4488222-india-russia-to-bolster-trade-ties]