US President Donald Trump’s second term is passing on to break traditional alliances more than diplomacy. Trump has recently imposed new tariffs-50% fee on India and Brazil goods, duty on European metals and Chinese tech exports were banned. His advisors are calling it the “reset” of the global economic system.
America’s grip loose, the world is going away
According to The Economist report, in 2000 the US was 20% of the global imports, which has now come down to 12%. Brazil has declared an incentive package of $ 6 billion, India is further promoting “Made in India”, while Canada and Japan have also imposed counter tariffs. South Korea is giving subsidy to its industries to find opportunities in the Middle East and Latin America.
Possible triangle of India-China-Russia
The meeting of PM Narendra Modi and Chinese President Xi Jinping is proposed in Beijing on 31 August, including Russia’s support. It is considered to be the return of Russia-India-China alliance, which was proposed in the 1990s. This triangle can challenge America’s influence amidst Trump’s policies and threats to retreat from NATO.
India’s inclination- strategy, not ideology
India is not getting away from the West, but due to the 50% tariff of Trump, it has to find strategic options. India is trying to resolve border disputes with China and Modi is going to China after seven years.
Why is Ric important?
Russia is interested in strengthening this triangle because it is struggling badly with Ukraine War and Western sanctions. China is taking interest in this because due to decrease in America, it can get new markets. This equation is important for India because it needs strategic flexibility while facing American pressure. If this alliance is strong then America’s global grip can become even weaker.
Concern of allied countries
For the first time after World War II, American allies like Germany, Japan and India have started exploring options for America-centered security system. In Germany and Japan, the discussion has now intensified that if America retreats, who will guarantee their security. Brazilian President Lula Da Silva is constantly motivating BRICS countries to separate from America and increase trade. He has talked about adding digital payment system to Prime Minister Modi and has also discussed new business expansion with Xi Jinping.
Statistics also testify to this change. Today, export of only seventh part of Brazil goes to the US, while it was a quarter 20 years ago. Now the mutual trade between the BRICS countries has increased more than the trade with America and this difference is continuously increasing.
Reasons behind ric:
- Russia needs relief from Ukraine War and Restrictions.
- China is watching economic opportunities due to decrease in American influence.
- India needs a way to get out of American economic pressure.
What are the weaknesses?
- Galwan Valley Conflict in 2020.
- India’s EV sector affected by China’s rare economy.
- India still depends on American market and technology.
Role of America and India’s challenge
India’s exports to the US were $ 77.5 billion (2024), which is much higher than Russia and China. But now Trump has imposed more fees on India than China. Delhi is shocked by this, especially when Trump was first considered close to Modi.
Modi’s assurance and emphasis on self -sufficiency
At the Ahmedabad rally, PM Modi assured small traders, farmers and cattle rearers that his government will protect their interests. He said that “the world is doing politics, but the strength of small entrepreneurs and farmers in India is strengthening the self -sufficient Bharat Abhiyan.”
Preparation on economic front
Sanjay Malhotra, Governor of Reserve Bank of India, said that Trump’s tariff will have a limited impact on India. According to Fitch Ratings, it can reduce the benefits of India’s supply chain shift. India has also hired a lobbying firm called Mercury Public Affairs LLC in Washington, which has deep relations with Trump.
What next?
On 31 August 2025, there will be a meeting of Prime Minister Modi and President Xi Jinping in Beijing. Russia wants to have tripartite talks in it. There will be a midterm elections in the US between September and December 2025. If the Republican party’s performance in these elections is weak, Trump can come under more pressure.
Trump’s unilateral policies have reduced instead of increasing American strength. Allies are now looking for alternatives and opposing countries are coming closer. India, China and Russia’s close closer are permanent or not, but it reflects the truth of changing global equations.
Ramesh Ghorai is the founder of www.livenewsblogger.com, a platform dedicated to delivering exclusive live news from across the globe and the local market. With a passion for covering diverse topics, he ensures readers stay updated with the latest and most reliable information. Over the past two years, Ramesh has also specialized in writing top software reviews, partnering with various software companies to provide in-depth insights and unbiased evaluations. His mission is to combine news reporting with valuable technology reviews, helping readers stay informed and make smarter choices.