Trump-Putin meeting in Alaska: What it means for India as US threatens to hurt with tariff bomb
The reason: The outcome of the high-stakes summit between the powerful leaders could determine whether India faces steeper US tariffs on key imports, including Russian oil.
The Donald Trump-Vladimir Putin Alaska meeting comes hours India's Prime Minister Narendra Modi announced tax cuts, pledged policy reform and urged the citizens to design and produce high quality goods at home, in a sweeping Independence Day 2025 speech that advocated for self reliance in a protectionist global economy.
In the last few weeks, Trump hit India with a 50 per cent tariff rate — much higher than the regional peers. The tariff bonmbs could hurt exports and put nearly 1 per cent of the nation's gross domestic product at risk, analysts said.
Washington has already imposed a 25% penalty on India's crude purchases from Moscow. Officials have hinted that if the talks fail to produce tangible progress on a Ukraine peace deal, the levy could be raised to 50 per cent or more, with additional duties likely on sectors such as textiles and jewellery.
On Thursday, Trump claimed that India's reduced intake of Russian oil, prompted by the current tariffs, had 'probably' encouraged Russia to engage in talks. Accoring to foreign media, the comment signals Washington's intent to keep economic pressure on New Delhi as part of its strategy to influence Moscow.
Any escalation could hurt India's exports to the US, particularly in labour-intensive sectors.
Despite tariff tensions, Randhir Jaiswal, spokesperson for external affairs ministry, said India's defence ties with Washington remain on track with a US delegation set to visit New Delhi this month.
'We are expecting a US Defense Policy Team to be in Delhi in mid-August,' Randhir Jaiswal said on Thursday. The 21st edition of the annual joint military exercise Yudh Abhyas is expected to take place later this month in Alaska, he added.
Officials in India are watching the Alaska talks closely. A breakthrough between Trimp and Putin could lead to a softer American stance, while a breakdown may harden Washington's trade position.
Trump flies to a meeting in Alaska with Putin on Friday in a different public mood - impatient with the Russia's unwillingness to negotiate an end to his war in Ukraine and angry over missile strikes on Ukrainian cities.
The world is waiting to see if this tougher version of Trump will show up in Anchorage or the former real estate tycoon who has sought to ingratiate himself with the wily former KGB agent in the past.
The answer could have deep implications for European leaders concerned that Russia, if allowed to absorb parts of Ukraine, will be more aggressive toward NATO allies near Russia like Poland, Estonia, Lithuania and Latvia.
"It's a reasonable concern to think that Trump will be bamboozled by Putin and cut a terrible deal at Ukraine's expense," Reuters quoted Dan Fried, a diplomat for several US presidents who is now at the Atlantic Council, as saying.
But Fried added that a different outcome is also possible. "There's a reasonable prospect that the administration will wake up to the fact that Putin is still playing them."
Russia has given no indication it is prepared to make concessions amid Ukrainian worries that Trump might make a deal without their input. Zelenskiy says he would like to see a ceasefire first followed by security guarantees.
(With inputs from agencies)
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