The USA has imposed a 50% tariff on goods from India: consequences for New Delhi and the SCO.

According to FREEДOM:

Summit of the Shanghai Cooperation Organization

From August 31 to September 1, a summit of the Shanghai Cooperation Organization (SCO) will take place in China. The main participants will be President of Russia Vladimir Putin and Prime Minister of India Narendra Modi. Leaders from Eurasian states and the Global South are also invited to the meeting. The goals that Chinese President Xi Jinping sets for the meeting participants were discussed in FREEФDОМ.

Import Issues

The United States has imposed a 50% tariff on Indian goods, the highest tariff in Asia. These measures could significantly reduce the competitiveness of Indian exporters in the US, and India could lose up to $85 billion a year.

'This is a strategic shock that... could weaken India's participation in global value chains,' emphasized Ajay Srivastava, founder of the Global Trade Research Initiative.

Reasons for the Tariffs

One of the main reasons for the introduction of tariffs is the sharp increase in Indian imports of Russian oil. As a result of the war in Ukraine, oil import volumes have significantly risen, and by July 2025, India had already imported 1.5 million barrels per day, becoming the world's largest importer of Russian oil by sea.

'Before Russia's invasion of Ukraine, India imported less than 1% of its oil from Russia... This argument about a sharp increase in percentages is nonsense,' said Peter Navarro, senior advisor to the US President on trade and manufacturing.

US Attitude

Washington believes that India uses Russian oil to meet domestic needs, but according to Navarro, this is just a 'laundering operation for the Kremlin' since Indian companies buy oil at lowered prices and then sell gasoline at higher prices.

'They are simply profiting... Made $16 billion in windfall profits — some of the wealthiest families in India,' noted US Treasury Secretary Scott Bessent.

India-US Relations

The US decision to impose tariffs has complicated relations between states and led to India abandoning plans to purchase American military equipment. Furthermore, New Delhi has begun to reestablish connections with Moscow and Beijing, which may gain new momentum at the SCO summit.

'The summit will be the largest since the founding of the SCO, which reflects the joint expectations of the participating states,' commented the Chinese ambassador to Russia, Zhang Hanhui.

Possible Outcomes of the Meeting

Analyzing further events, experts expect that India and China may announce new border control measures. The disputed territory of Aksai Chin, located in the mountainous region between the countries, may become one of the topics for discussion.

'Xi aims to use the summit to demonstrate what the new international order looks like after US leadership,' noted Eric Olander, editor-in-chief of the research agency 'China — Global South.'

Internal Tension in the SCO

Despite aspirations for rapprochement, there are conflicts within the SCO bloc. For example, India and Pakistan were unable to adopt a joint statement due to disputes surrounding a terrorist attack in Kashmir.

'The effectiveness of the SCO in addressing substantive security issues remains clearly limited,' emphasized Manoj Kevalramani, head of the India-Pacific research program.

Putin's Visit

During his four-day visit to China, Putin will also hold talks with Xi Jinping. It is expected that he seeks to learn whether China is ready to economically support Russia, given the difficulties in its economy due to the war in Ukraine and western sanctions.

The SCO summit in China will be an important stage for many participating countries in the context of global changes. India and China, as key players, have a good opportunity to hold serious negotiations that could influence not only their bilateral relations but also global politics. Against the backdrop of tensions between India and the US, the results of the meeting could significantly change the balance of power in the region.