Page 6 - The Indian EYE 081525

EYE ON INDIA AUGUST 08, 2025 | The Indian Eye 6

BRICS Closing Ranks? Trump’s Tariff

Offensive Pushes India, Brazil, Russia,

and China into Strategic Convergence

As President Donald Trump escalates tariff pressure on India and Brazil, the world’s largest emerging

economies appear to be recalibrating ties — with Lula and Modi in direct talks, Putin planning a visit

to India, and Modi heading to China for the first time in seven years

OUR BUREAU

New Delhi / Moscow / Beijing
he first week of August
2025 has brought a flurry of
Thigh-level diplomacy among
the BRICS powers, triggered not by
a shared economic boom, but by a
shared grievance: the United States’
aggressive tariff policy under Pres-
ident Donald Trump. On July 30,
Trump announced a 25% tariff on
Indian goods. A week later, citing
India’s continued import of Russian
oil, he added another 25% — bring-
ing the total to 50%, the same level
already applied to Brazilian products.
The move has placed India and Brazil
at the top of the list of countries most
affected by Washington’s new trade
protectionism.

In this tense atmosphere, Bra-
zilian President Luiz Inácio Lula
da Silva and Indian Prime Min-

ister Narendra Modi spoke for
an hour by phone on August 7. Prime Minister Modi and President Lula of Brazil with other world leaders at the BRICS summit in Rio de Janeiro in July

According to the Brazilian presi- timing is critical: Modi is preparing ernance. Now, the U.S. measures risk of a BRICS summit in Russia last Oc-
dential office, the tariffs — alongside to visit China later this month for the pushing these countries into a tighter tober.
other global economic issues — were first time in more than seven years, economic and strategic embrace.
a central topic. The two leaders reaf- while New Delhi works to finalise a China, itself no stranger to U.S. THE PUTIN FACTOR
firmed their goal of pushing bilateral visit from Russian President Vladi- tariffs, quickly criticised Washing-
trade beyond USD 20 billion by 2030, mir Putin. ton’s move against India as an “abuse n parallel, India’s National Securi-
agreed to expand the Mercosur–In- of tariffs” and hinted that it, too, ty Adviser Ajit Doval was in Mos-
dia agreement, and even exchanged THE TARIFF SHOCK AND could be targeted. This rhetorical Icow this week, meeting President
insights on domestic real-time pay- BRICS UNITY support from Beijing comes as Modi Vladimir Putin and confirming that
ment systems — Brazil’s PIX and prepares to travel to Tianjin for the the dates for a Putin visit to India are
India’s UPI — as symbols of shared or both India and Brazil, Shanghai Cooperation Organisation “almost finalised.” The Kremlin trip
innovation. Trump’s tariff hikes represent (SCO) summit beginning August 31. will mark another high-profile BRICS
The symbolism was as important Fmore than an economic set- It will be his first visit to China since leader-to-leader exchange, reinforc-
as the substance. Lula and Modi’s back — they are a political challenge 2018, a period marked by the 2020 ing the group’s intra-bloc diplomacy
conversation signalled that the two that could reshape alignments with- Himalayan border clash that froze at a time of external pressure.
largest democracies in the Global in BRICS. The grouping, which also high-level engagement for years. The Doval’s Moscow agenda report-
South are prepared to deepen coor- includes Russia, China, and South meeting is expected to follow up on edly included discussions on India’s
dination in the face of economic co- Africa, was already positioning itself the tentative thaw achieved when continued purchase of Russian oil
ercion from the United States. The as an alternative voice in global gov- Modi met Xi Jinping on the sidelines Continued on next page... >>

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