Trump Claims U.S. Has “Lost” India to China Amid Tariff Dispute and BRICS Tensions

 

Trump Says U.S. Has "Lost" India to China – What Does It Really Mean?

In yet another round of blunt remarks, former U.S. President Donald Trump has claimed that America has “lost” India to China, following Prime Minister Narendra Modi’s recent appearance at the Shanghai Cooperation Organisation (SCO) summit in Tianjin. His words have sparked a new round of debate about India’s role in global politics and the changing nature of U.S.-India relations.

The Indian Ministry of External Affairs (MEA) has chosen not to respond officially to Trump’s comments. However, some officials have quietly pointed out that Washington’s recent approach — particularly the steep tariffs imposed on Indian goods — stems from what they call a “miscalculation” of India’s global standing and foreign policy traditions.

Trump, posting on his social media platform Truth Social, wrote: “Looks like we’ve lost India and Russia to deepest, darkest, China. May they have a long and prosperous future together.” His statement quickly gained attention in diplomatic circles and media platforms worldwide.

The message was further reinforced by U.S. Commerce Secretary Howard Lutnick, who, in a Bloomberg interview, bluntly asked India to stop being a part of BRICS — the group of major emerging economies that includes Brazil, Russia, India, China, and South Africa. Lutnick’s words were direct: “They either need to decide which side they want to be on.”

A Deliberate Silence from New Delhi

Interestingly, India’s response so far has been one of deliberate silence. MEA spokesperson Randhir Jaiswal refused to comment directly on Trump’s post, a choice that aligns with the Indian government’s broader strategy of avoiding unnecessary public confrontations with the former U.S. President.

Behind the scenes, however, Indian officials argue that Trump’s sharp rhetoric and the recent tariff hikes do not reflect the depth and stability of the U.S.-India relationship that has been carefully built over the past three decades. One official source emphasized: “India is the most populous democracy with one of the largest markets in the world. We are active in multiple global platforms and are partnering the U.S. on many global challenges. Targeting us after nearly 27 years of stable relationship is nothing but a miscalculation.”

Adding to the confusion, the photo Trump used to make his point — showing Modi alongside Russian President Vladimir Putin and Chinese President Xi Jinping — was not from the SCO summit in Tianjin but an older picture taken years before the current tensions.

Tariffs, Trade, and the Russia Factor

Much of the friction between India and the U.S. has emerged after Trump imposed a 50% tariff on imports from India, pointing to New Delhi’s continued purchases of Russian crude oil despite the ongoing Russia-Ukraine war.

The criticism has not stopped there. Trump’s former senior trade adviser, Peter Navarro, even suggested that “Brahmins” in India were profiting from the oil trade with Russia, a remark the MEA officially dismissed as “inaccurate and misleading.”

Despite the heated words, India has kept its focus on encouraging peace in the Russia-Ukraine conflict. Just last week, External Affairs Minister S. Jaishankar spoke with Ukrainian Foreign Minister Andrii Sybiha, underlining India’s push for an “enduring peace” through dialogue and negotiations.

What Lies Ahead for India-U.S. Ties?

The larger concern now is how this war of words will affect upcoming engagements between the two nations. India is expected to host the next Quad summit later this year with the U.S., Japan, and Australia. However, a report in the New York Times suggested that Trump might skip the event, further straining ties. When asked, Jaiswal avoided confirming Trump’s attendance, saying only that the summit details would be worked out “through diplomatic consultations.”

Another possible stage for high-level engagement could be the United Nations General Assembly later this month in New York. But for now, the trajectory of India-U.S. relations seems uncertain, caught between tariffs, blunt statements, and larger geopolitical rivalries.

The Bigger Picture

Trump’s comments highlight a bigger dilemma facing Washington: how to balance its expectations from India at a time when New Delhi is charting an independent foreign policy. India continues to engage with the U.S. on global challenges, but at the same time, it remains a part of platforms like BRICS and SCO — where China and Russia play dominant roles.

For India, the goal has always been strategic autonomy, not picking sides. For the U.S., however, that middle ground is becoming harder to accept. As Trump’s words show, some in Washington view India’s balancing act as “drifting away.”

What remains clear is that India, with its growing economic and geopolitical clout, is not easily swayed by pressure. Whether in BRICS, the Quad, or the UN, New Delhi seems determined to pursue a path that aligns with its national interests — even if that means occasionally facing Trump’s fiery barbs.

How India’s Youth Can Turn U.S. Tariffs into an Economic Opportunity

 

How India’s Youth Can Turn U.S. Tariffs into an Opportunity

In early August, U.S. President Donald Trump announced steep tariffs on imports from India, including a 25% penalty on India’s oil purchases from Russia. The new 50% tariffs have created fresh challenges for the Indian economy, particularly for industries that rely heavily on exports to the U.S., one of India’s largest markets. But beyond the immediate economic impact, this moment also highlights a broader question: how can India adapt and leverage its strengths in a changing global trade environment?

Understanding the Tariffs

Tariffs are essentially taxes on imported goods. For decades, U.S. tariffs on Indian products hovered around 2–3%, keeping trade fairly predictable. But the new policy changes have drastically altered the landscape. A $10 shirt made in India, for example, would now cost $15 for American consumers. That puts Indian products at a disadvantage compared with competitors like Vietnam and Bangladesh, where similar goods would cost $12 or less.

While the initial focus of Trump’s tariff war was China—once slapped with tariffs as high as 145%—recent negotiations have reduced Chinese tariffs to 30%. Meanwhile, India, traditionally a close U.S. ally, now faces some of the highest tariffs alongside Brazil. For India, this threatens critical export sectors such as textiles, pharmaceuticals, and software services, which help bridge the country’s trade deficit. At the same time, the U.S. is seeking greater access to Indian markets, particularly for agricultural products like dairy, which could adversely affect local farmers.

Why China Holds the Advantage

India’s challenges are magnified when compared with China. Low wages alone are no longer enough to compete globally. China’s dominance comes from its scale, infrastructure, and technological capacity. Its share of global exports is 36.3% in textiles and clothing and 24.9% in machinery and electrical equipment, compared with India’s 4.4% and 0.9%, respectively. Additionally, China’s grip over critical supply chains and rare materials further strengthens its bargaining power.

The lesson is clear: India cannot rely solely on cheap labor. Without investment in research, technology, and innovation, Indian industries risk staying on the periphery, vulnerable to external tariffs and shifting global priorities.

From Producer to Consumer

For decades, economic growth in developing countries like China and India has been driven by consumers in high-income nations. But Western markets are shrinking due to aging populations and growing inequalities. Rising protectionism means the future of India’s growth must increasingly come from its domestic market. Indian citizens must evolve from low-cost producers to both producers and consumers, creating demand-driven growth at home.

The Power of India’s Youth

India’s largest advantage lies in its youth. Roughly one out of every five young people in the world lives in India, with around 120 million individuals aged 15–29 in secondary schools or colleges—roughly equal to the population of Japan. This demographic dividend could become India’s strongest defense against external shocks like tariffs.

The Indian diaspora’s track record in the U.S. shows the potential of Indian talent. From engineers and doctors to entrepreneurs and corporate leaders, Indians abroad have contributed significantly to innovation and global technology leadership. By investing in skill development, education, and job creation, India can unleash the full potential of its young population.

Policy Priorities for the Future

To turn this challenge into an opportunity, India must focus on boosting wages and incomes, investing in high-value industries, and supporting research and innovation. Greater public spending on health and education, along with a push for entrepreneurship and technological development, can help India’s youth drive domestic consumption and global competitiveness simultaneously.

In a world of rising protectionism and global uncertainty, India’s best hope lies not just in trade policies but in the energy, talent, and sheer numbers of its young population. With the right investments and vision, India’s youth could transform challenges like U.S. tariffs into a springboard for long-term economic strength.

India Scraps Duty on Cotton Imports Till September 30 to Support Textile Industry Amid U.S. Tariff Pressure

 

Government Removes Duty on Cotton Imports Till September 30 to Ease Pressure on Textile Industry

India’s textile sector has been under heavy strain in recent weeks, with fears of large-scale job losses triggered by steep U.S. tariffs on Indian products. In response to these challenges, the government has announced the scrapping of import duties on cotton until September 30, a move that officials describe as being “in the public interest.”

The Decision in Detail

On Monday, the Finance Ministry issued a notification removing the 11 percent duty on cotton imports with immediate effect. This also includes the elimination of the Agriculture Infrastructure and Development Cess (AIDC) on cotton. The measure came into force on August 19 and will remain valid until September 30.

By taking this step, the government is attempting to provide immediate relief to the domestic textile industry, which has been hit hard by rising costs and the threat of losing competitiveness in its biggest export market, the United States.

The U.S. Tariff Shock

The backdrop to this decision is the U.S.’s imposition of a sharp 50 percent tariff on Indian textile products. For an industry that counts the U.S. as its largest export destination, this was a heavy blow. Industry associations and textile manufacturers warned that the tariffs could make Indian products prohibitively expensive in comparison to those from competing countries like Bangladesh, Vietnam, and China.

Such a loss of competitiveness, industry insiders feared, would inevitably translate into falling export orders, shrinking revenues, and job losses across India’s massive textile workforce — one of the country’s largest employers after agriculture.

Why Cotton Matters

Cotton is the lifeblood of India’s textile sector. From spinning mills to garment factories, the availability and affordability of cotton directly affect production costs. With international markets already stacked against Indian exporters because of the new U.S. tariffs, a reduction in raw material costs was seen as a critical step to help businesses stay afloat.

By removing the 11 percent duty and the additional cess, the government hopes to reduce input costs for textile producers, allowing them to remain somewhat competitive despite the tariff barrier. This, in turn, is expected to soften the blow on employment in textile clusters across states like Gujarat, Tamil Nadu, Maharashtra, and Punjab.

Industry Reaction

While industry bodies welcomed the move, many pointed out that the relief is temporary and only buys time until the end of September. Leaders in the textile sector have been urging the government to engage diplomatically with the U.S. to negotiate a softer stance on tariffs, arguing that structural challenges cannot be solved by short-term import duty cuts alone.

For now, however, the removal of cotton duties has brought some immediate respite. Mills and garment manufacturers can import cotton at lower costs, helping them stabilize production lines and keep workers employed.

The Road Ahead

The government’s decision highlights the fine balance it must strike between protecting domestic agriculture and supporting India’s export-driven industries. Cotton farmers, for example, have often opposed duty-free imports, fearing it could hurt their prices. But with the textile industry facing unprecedented global headwinds, the government has clearly prioritized jobs and exports in this case.

As September 30 approaches, industry watchers will be keen to see whether the government extends the measure further, or whether diplomatic efforts succeed in addressing the tariff challenge in the U.S. market. For now, the removal of cotton import duties provides breathing space to an industry that is under tremendous stress.