SCO Summit 2025: How PM Modi Is Turning To Russia, China And Japan To Counter Trump’s 50% Tariff

Prime Minister Narendra Modi is stepping into a crucial period of foreign policy recalibration as India braces for a steep tariff hike by the United States and simultaneously seeks to strengthen its relationships with China and Russia.

The developments mark a significant shift in India’s external engagement strategy at a time when global geopolitics is being reshaped by economic penalties, regional alliances, and power blocs.

US Slaps 50% Tariff on Indian Goods

The United States will impose a 50% tariff on Indian goods from August 27, badly hitting labour-heavy sectors like shrimp, apparel, leather, and gems & jewellery.

These industries make up a big part of India’s USD 86 billion annual exports to the US.

Pharmaceuticals, electronics, and petroleum will remain exempt. But the higher duty will still cover more than half of India’s exports to America.

Currently, a 25% tariff exists. The extra 25% is a penalty for India’s purchase of Russian oil and weapons. The move comes at a tough time for New Delhi, which is balancing economic stress with strategic independence.

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SCO Summit in China

Just days after the tariff move, Chinese President Xi Jinping will host over 20 world leaders at the Shanghai Cooperation Organisation (SCO) summit in Tianjin from August 31 to September 1.

Beijing is projecting the meeting as a show of Global South unity. Russian President Vladimir Putin will also attend, using the platform to counter Western isolation.

Modi to Visit China After 7 Years

Prime Minister Modi has accepted Xi’s invitation and will travel to China for the summit, his first visit there in over seven years.

The last time Modi, Xi, and Putin shared a stage was at the BRICS summit in Kazan last year, when Western nations kept their distance from Moscow.

His visit follows External Affairs Minister S. Jaishankar’s recent trip to Russia, where he met Putin, held trade talks, and discussed global issues like Ukraine and Afghanistan. The visit showed India’s strong ties with Russia, despite Western criticism.

Bigger Role for SCO

This year’s SCO summit will be the largest since it began in 2001. The bloc now has 10 permanent members and 16 observer and dialogue partners.

The SCO, once focused only on security, now covers trade and military cooperation. China calls it a counterweight to US-led systems.

For India, the summit is a chance to engage more deeply with Eurasian countries while managing tensions inside the group, especially with Pakistan. Experts believe it may also help reduce India-China border tensions and boost cooperation in trade, visas, climate, and cultural ties.

The Message of Modi’s Trip

The timing of Modi’s visit is important. By appearing alongside Xi and Putin just as US tariffs hit, India is showing it wants to widen its options and build resilience through multiple partnerships.

At the summit, Modi is expected to highlight India’s stand on sovereignty, connectivity, and cooperation.

Stop in Japan Before China

Before heading to China, Modi will visit Japan on August 28–30 for the annual India-Japan summit with Prime Minister Shigeru Ishiba.

This will be his first standalone trip to Japan in nearly seven years, and his eighth since 2014. It shows India is also strengthening ties with close Asian partners even while engaging with Beijing and Moscow.

India’s Balancing Act

The combination of US tariffs, closer ties with Russia, participation in China’s SCO summit, and the Japan visit reflects India’s new foreign policy approach.

With rising trade tensions from Washington, New Delhi is leaning more into China- and Russia-led platforms while still keeping strong ties with Japan and other allies.

This balancing act highlights India’s effort to protect both economic and strategic interests in a shifting global order.

As the tariffs kick in and Modi stands alongside Xi and Putin, India’s foreign policy is moving into a new phase, one marked by pragmatism and multipolar engagement.