US Softens After PM Modi’s China Visit

Trade tensions between India and the US are rising. US Treasury Secretary Scott Bessant has accused India of financing the Ukraine war by buying Russian oil, which India has rejected. Bessant called the SCO a sham and called the decision to impose a 50% tariff on India unfair. He said that India's values ​​are close to those of the US.

Reports of trade and diplomatic tensions between India and the US are making headlines. US Finance Minister Scott Bessant said in an interview to Fox News that there are differences between the two countries, but ultimately these two big countries will solve their problems.

Describing India as the world's largest democracy, he said that India's values ​​are closer to the US and China, not Russia. But at the same time, he also accused India of financing the Russia-Ukraine war by buying and selling Russian oil.

India rejected these allegations and said that its oil purchases are based on national interest and market needs. On the other hand, Besant termed the Shanghai Cooperation Organisation (SCO) as 'mostly cosmetic', whose annual conference was recently held in Tianjin city of China.

In this conference, Prime Minister Narendra Modi met Russian President Vladimir Putin and Chinese President Xi Jinping. The US's decision to impose 50% tariff on India is also in the news, which India has termed as 'unfair and absurd'.

'SCO is not a very effective organisation'

Besant called the SCO a 'performative' or cosmetic organisation, whose purpose is not very effective. This organisation is a coalition of Russia, China, India and some other countries, which is formed for regional cooperation.

Besant believes that India is more inclined towards the US and China, because India is a democratic country. Still, the US's displeasure with India due to buying oil from Russia is clearly visible.

India has always said that it is buying oil at cheap prices, so that it can save its people from inflation. This oil purchase is necessary for India's energy interests.

Apart from this, Besant also cited slow progress in India-US trade talks as a reason for increasing tariffs. The Trump administration has imposed a 50% tariff on India for purchasing Russian oil, which has soured the relations between the two countries. This is considered to be the worst phase of India-US relations in the last two decades.