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Tariffs

BRICS Confronts U.S. Pressure as India and China Engage in Trade Imbalances

Strategic Insights

— 1 min read

The BRICS alliance, comprising Brazil, Russia, India, China, and South Africa, convened virtually amidst escalating trade tensions sparked by U.S. President Donald Trump's tariffs. India's External Affairs Minister S. Jaishankar called on BRICS partners to urgently address trade imbalances with New Delhi, citing India's largest trade deficits with BRICS partners, particularly China and Russia.

Key Takeaways:

  • India's trade deficits with BRICS partners have grown significantly, with a record $99.21 billion deficit with China in the fiscal year ending March 2025.
  • Chinese exports to India surged in the fiscal year ending March 2025, driving New Delhi's trade deficit with Beijing to a record $99.21 billion, with a $77.7 billion trade surplus with India by August 2025 alone.
  • Bilateral trade with Moscow has also hit historic levels at $68.7 billion, fueled largely by India's expanded oil imports, resulting in a massive $59 billion deficit for India.
  • India's External Affairs Minister S. Jaishankar urged the BRICS alliance to review trade flows among its member states and address the imbalance expeditiously.
  • The U.S. has slapped 50% tariffs on Indian goods, far steeper than on Chinese imports, straining U.S.-India ties amid trade tensions.
  • Analysts note that despite the current friction, the long-term India-U.S. relationship remains durable, with the structural foundations of the India-U.S. relationship remaining robust.
  • India sees the U.S. as a vital strategic, technology, and defense partner, while Washington views New Delhi as a critical counterbalance to China's rise.

Statistics:

  • India's trade deficit with China in the fiscal year ending March 2025: $99.21 billion (Chinese Official Customs Data).
  • Trade surplus with India by August 2025: $77.7 billion (Chinese Official Customs Data).
  • 16% increase in trade surplus with India from the previous year (Chinese Official Customs Data).
  • Bilateral trade with Moscow: $68.7 billion ( exact date not specified).
  • India's trade deficit with Russia: $59 billion ( exact date not specified).
  • Tariffs imposed by the U.S. on Indian goods: up to 50% ( exact date not specified).

Sources:

  • "Urgent need to address trade imbalances among BRICS nations: S Jaishankar." (Indian Express, exact date not specified).
  • "BRICS: S Jaishankar calls for expediting trade solutions." (Times of India, exact date not specified).
  • "Chinese official customs data." (Chinese Official Customs Data, exact date not specified).
  • "India, US have 'special relationship': Trump." (The Hindu, exact date not specified).
  • Chietigj Bajpaee, senior research fellow at Chatham House.

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