US President Donald Trump’s use of tariffs as a tool to pressure countries like India is causing significant challenges not only for the targeted nations but also for American foreign policy. The heavy duties imposed on India, Brazil, and others have made their goods more expensive in the US market, prompting these countries to strengthen ties with each other, which could undermine US interests globally. Here’s an overview in six points:
Modi and Lula Discuss Trade Cooperation
Prime Minister Narendra Modi recently held talks with Brazilian President Lula da Silva, another country facing tariffs of up to 50% from the US. Lula openly criticized Trump’s tariff policies. Both leaders agreed to enhance cooperation in crucial sectors such as trade, technology, energy, defense, agriculture, and health, signaling closer ties between tariff-hit nations.
China’s Strong Opposition
China has voiced strong disapproval of the US tariffs targeting India and others. China’s ambassador to India, Shu Feihong, pointed out that using tariffs as a weapon violates United Nations principles and weakens World Trade Organization rules. He expressed China’s solidarity with countries like India and Brazil, especially as India prepares to attend the SCO summit in China after a seven-year gap.
Reviving BRICS Unity
Trump’s tariff measures risk reinvigorating the BRICS group—Brazil, Russia, India, China, and South Africa—and expanding it to include Iran, Ethiopia, Indonesia, Egypt, and the UAE. Once perceived as losing momentum, these nations may now unite on trade, investment, and currency cooperation as a counter to US policies, posing a strategic challenge to Trump’s agenda.
High-Level Engagement with Russia
Indian National Security Advisor Ajit Doval’s recent visit to Moscow and meetings with President Vladimir Putin, along with planned visits by External Affairs Minister S. Jaishankar, underscore efforts to strengthen strategic partnerships. These moves are viewed as part of a broader strategy to deepen ties within BRICS and beyond, offsetting US pressure.
European Backlash and F-35 Deal Concerns
The impact of US tariffs has also been felt in Europe. Swiss politicians have raised doubts about a major deal to purchase 36 F-35A fighter jets from the US, worth around 7.3 billion Swiss francs (9.1 billion dollars), following a 39% tariff imposed by the US on Switzerland. This shows the broader diplomatic fallout from Trump’s tariff policies.
Shift Toward Alternative Partnerships
Countries worldwide are exploring ways to mitigate US tariff pressure by pursuing transactions in local currencies, embarking on joint infrastructure projects, and strengthening alternative financial institutions. This trend could reshape global trade dynamics, reducing US dominance and influencing future economic alliances.
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