At SCO Summit, China, Russia, India Signal Closer Ties;Trump Blasts India-Russia Energy Ties

TradingKey - On Monday, the leaders of China, Russia, and India showcased their firm commitment to regional economic cooperation during the SCO summit held in Tianjin. Chinese President Xi Jinping, Indian Prime Minister Narendra Modi, and Russian President Vladimir Putin attended the meeting, which emphasized a spirit of unity and mutual assistance, aiming to deepen cooperation among the three countries in crucial areas such as trade and technology.

During the summit, Xi particularly stressed that China and India, as "two great ancient civilizations of the East" and "important members of the Global South," should strategically become "partners that achieve mutual success" and realize a "dragon-elephant dance."

Both sides reaffirmed their consensus to be "partners rather than rivals" and plan to use this year’s 75th anniversary of diplomatic relations between China and India as an opportunity to focus on expanding development cooperation. They prioritized areas with a "greatest common divisor," such as trade and high technology, to resolve differences and enhance regional economic resilience.

Meanwhile, India-Russia relations became another focal point at the summit. Modi stated that India and Russia have "always stood shoulder to shoulder even in the most difficult times," emphasizing that their close cooperation is crucial for both countries' economic interests as well as global peace and stability.

Modi's remarks were seen as a response to recent U.S. trade barriers. Last month, the U.S. announced a 50% tariff on India, including a 25% secondary tariff, pressuring New Delhi to reduce its purchases of Russian oil. The Indian government publicly condemned this move as “unfair,” “unjust,” and “unreasonable,” arguing that it undermines international trade rules.

“A few hours later, Trump reacted furiously by doubling down on defending the imposition of tariffs against India,” reported Indian media NDTV.

On Monday Eastern Time, President Donald Trump claimed via his social media platform Truth Social that India had proposed cutting tariffs during negotiations but warned that “it’s too late now.” He suggested that India should have taken action “years ago.”

He specifically noted that "buys most of its oil and military products from Russia, very little from the U.S." providing context for the trade deficit. "They have now offered to cut their Tariffs to nothing, but it's getting late. They should have done so years ago. Just some simple facts for people to ponder!!!"

In recent months, U.S.-India relations have experienced rare deterioration not seen in over two decades due to increasing criticism from U.S. officials regarding India's importation of Russian oil.

As India's third-largest oil-consuming nation globally, Russian crude currently accounts for nearly 40% of its total oil procurement. Indian Oil Minister Hardeep stated on Monday in The Hindu newspaper that if India stops importing Russian oil, it could lead international oil prices to double or more, reaching $200 per barrel.