US-India Trade Relations Tense Amid SCO Summit, Treasury Secretary Optimistic

US Treasury Secretary Scott Bessent remains hopeful that the trade tensions between India and the United States will be amicably resolved, asserting that New Delhi's core values align more closely with Washington's than with those of China and Russia. Speaking to Fox Business, Bessent minimized the impact of the Shanghai Cooperation Organisation (SCO) Summit, labeling it as 'largely performative'.

'This is a longstanding meeting, it's called the Shanghai Cooperation Organisation, and I think it's largely performative,' Bessent mentioned. 'At the end of the day, India emerges as the most populous democracy globally, with values much akin to ours and somewhat to China's but not particularly to Russia's.' Bessent believes that the two significant nations will ultimately reach an agreement, though he critiqued India's ongoing purchase and resale of Russian oil, which he suggested indirectly funds Russia's military efforts in Ukraine.

Bessent's comments emerge amidst escalating tensions caused by a hefty 50 percent tariff on Indian goods, including a 25 percent penalty related to Russia's oil purchases. Meanwhile, White House trade adviser Peter Navarro criticized Indian Prime Minister Narendra Modi for engaging with Russian President Vladimir Putin and Chinese President Xi Jinping, calling the interaction 'shameful' and urging India to pivot towards alliances with the US, Europe, and Ukraine.

Navarro expressed, 'It's disappointing to witness Modi align, as the leader of the world's largest democracy, with authoritarian figures like Putin and Xi Jinping.' Addressing the SCO summit, PM Modi emphasized the importance of boosting connectivity to enhance trade within the bloc.

Russian President Vladimir Putin remarked that SCO dialogues contribute to crafting a new Eurasian security system, counteracting obsolete Eurocentric models. Chinese President Xi Jinping urged the SCO to champion fairness and oppose Cold War mentalities during the 25th Meeting of the Council of Heads of State of the SCO.

(With inputs from agencies.)