US President Donald Trump recently said in extremely strict words that no business talks will be held with him until India is ready to reduce tariffs. After that, Prime Minister Narendra Modi’s government is being forced to change the attitude of its US-supporter foreign policy. With Trump’s tariff war, all the countries are being forced to think afresh on their business options. The softening of India-China relations in the Galvan Valley of East Ladakh in the summer of 2020 is now due to the new economic reality before the two countries, especially the new economic reality before the two countries. China’s Foreign Ministry spokesman welcomed the news on 8 August that Prime Minister Modi would attend the Shanghai Cooperation Organization Summit in China later this month.
India-Russia
On the same day, Modi and Russian President Valdimir Putin spoke on the phone. The Russian leader expressed his opinion on Ukraine’s latest development before his meeting with President Trump. The Prime Minister said that India is keen to host him. The two leaders also reiterated India and Russia’s commitment to further strengthen the “special strategic partnership”.
Earlier this week, National Security Advisor Ajit Doval went to Moscow. He interacted with Sergei Shigu, Secretary, Powerful Security Council of Russia. He later met with President Putin. During Doval’s visit, Kremlin announced that Russian leaders would also go to India.
In this way, New Delhi is quietly indicating the US President that it is not going to sacrifice his traditional colleague as per his wish. It also had a message that no compromise can be made on India’s strategic autonomy. Former Indian Foreign Secretary Kanwal Sibal says, “Trump is mashed in ego. He feels that America is sufficiently powerful to impose its terms on all countries. “They also say,” They are spoiling India-US relations without any benefit. Foreign policy cannot be a matter of personal ego. Are relations with India only $ 46 billion? The matter is not so much.
America has an edge in trade with India in the service sector. Its defense companies will lose market opportunities in India. India does not need to buy LNG from America. The doors of possible nuclear cooperation will be closed. The pace of America’s Hind-Pacific strategy will slow down. ”India and America were in different camps during the Cold War but have changed a major change in the relationship between the two countries for the last 25 years. The governments of New Delhi and Washington took concrete steps towards converting these relations into rich economic and strategic partnership. The main reason for this was the rise of China in Asia. But now all this has changed again or has stopped.
Brazil and BRICS
Brazilian President Lula The Silva called Modi on 7 August. Trump has imposed a huge tariff of 50 percent on both India and Brazil countries. A 25 percent fine imposed on India on purchasing Russian oil will be applicable later this month. Trump is also angry with the attitude of the Lula government towards his close friend Brazil’s right -wing former President Zaier Bolsonaro. Bolsonaro is a supporter of Trump and currently taking shelter in the US.
In fact, BRICS, the summit organization of Brazil, Russia, India, China and South Africa, has been on the target of Trump as they consider this organization to be anti -America and it intends to create a different type of currency in exchange for US dollars for international trade transactions. He has also threatened to impose additional tariffs on BRICS member countries.
According to Reuters, President Lula told reporters before calling Modi that he would call BRICS leaders to hold a collective discussion on Trump’s tariff. Lula said, “I will discuss with him what to do in such a situation, what will be its impact on every country, so that we can take a decision. It is necessary to remember that there are ten countries of BRICS in the G20. “A statement issued from Lula’s office after a conversation with Modi said,” The two leaders discussed the global economic landscape and unilateral tariffs. Brazil and India, till date, are the most affected countries. ”According to the President’s Office of Brazil, Lula and Prime Minister Modi of India reiterated the target of raising bilateral trade by 20 billion per year by 2030, which was around $ 12 billion last year.
But India’s statement was not in this way, but more cautious. The statement just said, “The Prime Minister recalled his Brazil visit last month, during which the two leaders agreed to strengthen the cooperation between business, technology, energy, defense, agriculture, health and people.” Based on these discussions, he reiterated the commitment to take the Indo-Brazilian strategic partnership to new heights. The two leaders exchanged views on various regional and global issues of mutual interest. The two leaders agreed to remain in touch. ”
India’s strategy
Unlike Trump’s frequent attacks on India, the Modi government has decided not to get involved in any kind of debate with the US President. Instead, the Ministry of External Affairs has described tariffs as “unfair, illegitimate and irrational” in two different statements. Slowly it also said that other countries including European and America are shopping from Russia.
The Indian official is waiting for the US delegation to reach New Delhi for trade talks. However, there is confusion when it came later this month. On the other hand, Indian officials are multiplying which tariffs they can make changes, so that American objects can be imported without causing more damage to the country’s economy. However, opening of agriculture and dairy areas cannot be negotiated as the Prime Minister has assured the Indian farmers himself on August 7 that they will not disappoint them and national interest is paramount for them. India has indicated that it will not stop importing Russian oil. However, it is reported that oil companies have reduced oil purchases from Russia. Like every other country, India is also looking for new markets and existing efforts to improve relations with China are also due to economic concerns after Tram’s tariff war.
India will wait for the next round of trade talks and hope that soon a solution is found. New Delhi is also looking at the meeting between Donald Trump and Vladimir Putin on next week or 15 August with hopeful eyes. If the two leaders agreed to the ceasefire in Ukraine, then it can be expected that natural restrictions will not be imposed naturally. In such a situation, the conversation for the agreement on 25 percent tariff will be quite easy for both sides, which will be good for everyone.
“I will discuss with BRICS leaders what to do in every country, what will be its impact on every country, so that we can decide”
Lula The Silva, President, Brazil
If the BRICS countries are adamant, then they may have to face addition to tariffs and ban. We do not tolerate this ”
Donald Trump, President, America
