Modi Heads to China as India-US Trade Tensions Mount

By Staff, Agencies
Indian Prime Minister Narendra Modi is set to land in Tianjin this weekend for his first visit to China in seven years. 

The trip coincides with growing India-US trade tensions, placing Modi alongside Chinese President Xi Jinping and Russian President Vladimir Putin at a crucial regional summit.

Modi’s visit follows the US doubling tariffs on Indian exports to 50%, citing India’s ongoing Russian oil purchases—a move that strains long-standing tech and strategic ties.

According to South Asia analyst Michael Kugelman, the move has deeply damaged bilateral trust. "Indian trust in the US is shattered," he said, adding, "I’m not sure whether US officials fully realize how much trust they have squandered in such a short time."

Modi's presence at the Shanghai Cooperation Organization [SCO] summit in Tianjin sends a strong diplomatic message. The summit is set to begin on Sunday and is expected to focus on regional security and economic collaboration.

Kugelman noted the geopolitical significance of the visit, "Modi will be in China at a moment when India-China relations are stabilizing and India-US relations have gone south. It is a powerful optic."

Manoj Kewalramani, head of Indo-Pacific studies at the Takshashila Institution in Bengaluru, added, “No doubt there are some in China who are reveling in the trade tensions between India and the US.”

The US, India’s top export market with $86.5 billion annually, has slapped higher tariffs on nearly $60.2 billion, hitting labor-intensive sectors like textiles and jewelry hard.

As tensions with Washington grow, India is strengthening ties with Russia. Putin sees this as a prime opportunity to deepen strategic ties with New Delhi, saying, "It’s a great moment for everyone to stick out their tongues at Washington."

India sees its relationship with Russia as key to balancing the West, diversifying military supplies, and securing long-term energy needs.

Modi is set to meet Xi at the SCO summit, focusing on trade and investment. Analysts say both sides are exploring a new equilibrium amid global shifts.

Before heading to China, Modi will visit Tokyo on Friday for the annual India-Japan summit with Prime Minister Shigeru Ishiba, a meeting gaining weight amid rising India-US trade tensions.

To counter US tariffs, India is boosting ties with Japan in tech, defense, and investment. Japanese firms plan ¥10 trillion [$68B] in investments, with Suzuki pledging $8B.

Following a tour of a Suzuki plant, Modi called Japan and India “partners made for each other.” Talks are expected to focus on rare earth cooperation and high-value manufacturing.

Despite rising trade tensions, Indian officials say ties with Washington remain important—but emphasize the need to diversify global partnerships to avoid overreliance.

"India now cannot afford to appear as though it is giving in to US pressure on oil imports, or anything else that could be construed as a capitulation, and public anger is high," one Indian official noted.

In response to the tariffs, India has launched a major export push across 40 countries, aiming to support its textile sector and reduce losses.