Daily News - Tuesday, 2 September 2025
‘Two great countries will get this solved’: Scott Bessent on India-US trade tensions, calls SCO summit ‘performative’ (Financial Express)
The United States, under President Trump, has sharply escalated trade tensions with India by raising tariffs to 50% and criticising New Delhi’s continued purchase and resale of Russian oil, which Washington claims indirectly finances Moscow’s war in Ukraine. Despite these disputes, Treasury Secretary Scott Bessent struck a hopeful tone, emphasising that the fundamentals of the US-India partnership remain strong, downplaying India’s engagements with Russia and China at the SCO Summit, and stressing that democratic values ultimately align New Delhi closer to Washington than to its authoritarian rivals. Meanwhile, the Trump administration is considering further sanctions on Russia amid intensifying attacks on Ukraine, even as senior US officials like Peter Navarro accuse India of acting as an “oil laundromat” for the Kremlin, reflecting Washington’s frustration with both the trade imbalance and India’s foreign policy balancing act.
India's rise as China's economic alternative stalls under Trump's tariffs (Business Standard)
President Trump’s sweeping 50 percent tariffs on Indian exports have jolted the foundations of the US-India economic partnership, undermining years of effort by New Delhi to position itself as the cornerstone of the “China Plus One” manufacturing strategy, while leaving American companies questioning their investments in India and forcing Indian exporters into panic over jobs and survival. The shock has pushed Prime Minister Modi, under mounting pressure from dislocated supply chains and betrayed business leaders, to re-engage with China after seven years, even though relations remain fraught with military clashes, investment restrictions, and deep economic vulnerabilities tied to Beijing’s control of critical resources and technologies. As India scrambles to protect jobs, find alternative markets, and balance national security with economic necessity, it is increasingly left with no choice but to weigh closer economic cooperation with China, despite the rivalry, because Washington’s punitive stance has cast doubt on India’s future as a trusted alternative to Chinese manufacturing.
India pushes back at US over Russian crude, calls 'laundromat' claim false (Business Standard)
India has firmly defended its heavy purchases of Russian crude, with Oil Minister Hardeep Puri arguing that adherence to international price-cap rules has stabilised markets, prevented a catastrophic surge in oil costs, and shielded the global economy from $200-per-barrel shocks, while rejecting US accusations that India acts as a “laundromat” for Moscow’s oil revenues. The defence comes amid heightened tensions as President Trump’s administration has doubled tariffs on Indian exports to 50 per cent, imposed additional reciprocal duties, and voiced frustration through officials like Scott Bessent and Peter Navarro, while US Senator Lindsey Graham warned that India, China, and Brazil are indirectly fuelling civilian deaths in Ukraine by continuing Russian energy trade. Against this backdrop, Prime Minister Modi met Russian President Vladimir Putin at the SCO Summit to expand cooperation across multiple sectors, underscoring New Delhi’s balancing act between defending its energy security and managing growing pressure from Washington and its allies.
