Global Leaders Unite Against US in Face of Tariffs and Sanctions

Strategic Insights -

In a show of unity, China's President Xi Jinping, India's Prime Minister Narendra Modi, and Russia's President Vladimir Putin have been seen together, smiling and laughing, at the Shanghai Cooperation Organization. This emerging alliance is a direct response to the US's aggressive stance, including steep tariffs against China and India, and punitive economic sanctions against Russia. The alliance is a clear affront to the US's attempts to assert its dominance over these countries. Trump's antagonistic stance has forced Xi, Modi, and Putin to align more closely, creating a unique set of leaders with distinct advantages over him.

Key Takeaways:

  • The Shanghai Cooperation Organization is a platform for China, India, and Russia to showcase their unity and solidarity against the US.
  • The alliance is a response to the US's aggressive trade policies, including tariffs against China and India, and economic sanctions against Russia.
  • Trump's executive powers are limited by the US's democratic institutions, whereas Xi and Putin hold significant power as authoritarian leaders.
  • The three leaders (Xi, Modi, and Putin) have varying term limits, with Xi's tenure effectively extending beyond 2030, and Trump's term ending in 2028.
  • The converging terms of the leaders may lead to more frequent meetings and decisions, despite their respective ages, ranging from 72 to 79 years old.
  • Former Treasury Secretary Larry Summers criticized Trump's policy, saying the US has "united our adversaries and divided our friends."
  • Canadian PM Mark Carney warned of a shift from free trade to mercantilism in response to the trade war, citing the rise of "economic nationalism."
  • The BRICS group, which includes China, India, Russia, and eight other countries, has jointly condemned US unilateral measures and condemned "tariff blackmail."
  • Xi called for multilateralism, openness, and cooperation amongst BRICS members to counter the "hegemony, unilateralism and protectionism" posed by the US.
  • BRICS nations are reducing their dependence on the US, including promoting trade in local currencies and increasing gold reserves.
  • Ongoing trade tensions have led some consumers in Canada, Australia, and Europe to boycott US products and seek local alternatives.
  • Diplomatic correspondence and potential trade talks may ease tensions and resume trade between the US and China.
  • Investors are hopeful for a Fed rate cut, which could further benefit the US economy and the slowing labor market.

Statistics:

  • 40% of global GDP and 50% of the world's population are represented by the BRICS group.
  • 51 deaths were reported in violent protests in Nepal that led to the resignation of the country's Prime Minister.
  • The PSEi index in the Philippines is down 6.4% year-to-date, in contrast to the US market making all-time highs.

Sources:

  • Open Defiance, Sept. 8, 2025
  • Interview with former Treasury Secretary Larry Summers (no date mentioned)
  • Speech by Canadian PM Mark Carney (no date mentioned)
  • BRICS Summit, last week (no date mentioned)
  • Various news articles and statements by government officials (no specific sources mentioned)