UPDATE: India has called on its BRICS partners to urgently address significant trade imbalances, as tensions rise from U.S. tariffs. During a virtual summit on Monday, India’s External Affairs Minister S. Jaishankar highlighted that the country’s biggest trade deficits are with BRICS members, particularly with China.
This urgent appeal comes as President Donald Trump has imposed tariffs that have sent shockwaves through international trade relations. Jaishankar’s remarks underscore India’s growing concern amid a backdrop of rising tensions with the U.S., which has accused BRICS nations of pursuing “anti-American policies.”
Jaishankar, representing India at the summit in the absence of Prime Minister Narendra Modi, noted that the trade deficit with China reached a staggering $99.21 billion for the fiscal year ending March 2025, marking a significant economic strain. Trade data released on Monday indicates that Chinese exports to India surged, contributing to a growing trade surplus of $77.7 billion for China this year as of August, a 16% increase from last year.
The BRICS summit highlighted varying perspectives on trade, with host Brazil accusing the U.S. of “blackmail.” Brazil and India are among the nations hardest-hit by Trump’s tariffs, which can reach as high as 50%. Meanwhile, China’s President Xi Jinping criticized U.S. trade policies, warning against “hegemony and unilateralism” that disrupt the global economy. He urged BRICS nations to unify against rising tariffs.
India views BRICS primarily as an economic initiative, while China and Russia emphasize its geopolitical significance. Jaishankar stated that the BRICS bloc could lead by example by reviewing trade flows among its members, pressing for swift solutions to address trade deficits.
In a broader context, India’s bilateral trade with Russia also reached record levels, hitting $68.7 billion in fiscal year 2025, largely due to increased oil imports. However, India’s relationship with the U.S. remains fragile, especially after the imposition of a hefty 50% tariff on Indian goods, significantly higher than the 30% tariffs on Chinese imports.
Trade talks between India and the U.S. have stalled, with Washington pushing for restrictions on India’s Russian oil purchases. Despite these tensions, there are signs of thawing relations. Trump acknowledged India’s offer to cut tariffs on American imports, though he criticized the timing as “too late.”
Earlier this week, Trump described the U.S.-India relationship as “special,” praising Modi as a “great prime minister.” Modi reciprocated on social media, stating he appreciates Trump’s sentiments, which reflects ongoing efforts to mend ties despite underlying tensions.
Experts suggest that while the relationship faces challenges, the foundational aspects of U.S.-India ties remain strong. Chietigj Bajpaee, a senior research fellow at Chatham House, remarked that India is viewed by the U.S. as a counterbalance to China’s rise, highlighting the strategic importance of their partnership.
As BRICS members navigate their economic standings amidst U.S. tariffs, the urgency for collaborative solutions has never been greater. The international community will be watching closely as developments unfold in this critical trade dialogue.