India Calls on BRICS to Address Trade Deficits Amid Rising U.S. Tariff Tensions

India Urges BRICS to Address Trade Imbalances Amid U.S. Tariff Pressures

During the 2025 BRICS virtual summit, India called on member countries to confront longstanding trade imbalances within the bloc, underscoring its substantial deficits with fellow members. The five-nation group—comprising Brazil, Russia, India, China, and South Africa—collectively criticized the escalating tariffs imposed by the United States under President Donald Trump, which have unsettled both allies and adversaries globally.

India Highlights Internal Trade Deficits

India’s External Affairs Minister S. Jaishankar, representing Prime Minister Narendra Modi, stated that India’s largest trade deficits are with other BRICS partners. This appeal for intra-bloc economic recalibration comes amid growing U.S. tariffs, which India and Brazil have described as onerous, with levies reaching up to 50% on certain goods.

The absence of Prime Minister Modi, attending the Shanghai Cooperation Organization summit in China, was notable given the delicate balance India maintains between its strategic partnerships with both Beijing and Washington.

BRICS Stands United Against U.S. Protectionism

Host nation Brazil condemned U.S. trade policies as ‘blackmail,’ reflecting widespread frustration within BRICS over Washington’s approach. China’s Premier Xi Jinping criticized ‘hegemonism, unilateralism, and protectionism,’ warning that such trade wars disrupt the global economy and undermine established international trade norms. Xi urged BRICS members to maintain solidarity amid rising external tariffs.

Divergent BRICS Perspectives on Bloc’s Role

While India emphasizes BRICS as primarily an economic alliance, focusing on mechanisms like the New Development Bank and emergency liquidity frameworks, China and Russia view the group through a geopolitical lens. According to Chatham House senior research fellow Chietigj Bajpaee, China leverages BRICS to complement its broader strategic initiatives like the Belt and Road Initiative and the Shanghai Cooperation Organization.

Trade Deficits with China and Russia Escalate

India’s trade deficit with China reached a historic high of $99.21 billion in the fiscal year ending March 2025, fueled by a steady rise in Chinese exports to India. Chinese customs data revealed a 16% year-on-year increase in China’s trade surplus with India, totaling $77.7 billion as of August 2025.

Similarly, bilateral trade with Russia hit $68.7 billion in fiscal 2025, with India’s oil imports contributing to a $59 billion deficit. Indian think tanks, including Natstrat, have noted India’s underperformance in tapping BRICS markets despite increased imports from member countries over the past decade, calling for dedicated initiatives to boost Indian exports within the bloc.

Tensions and Prospects in U.S.-India Trade Relations

The United States has imposed a 50% tariff on Indian goods, surpassing the 30% tariffs levied on Chinese products, exacerbating tensions between New Delhi and Washington. Trade negotiations have stalled over issues such as India’s continued purchases of Russian oil and U.S. allegations of Indian protectionism in sectors like agriculture and dairy.

President Trump recently claimed India offered to reduce tariffs on American imports to zero, though he criticized the timing of the proposal. Despite diplomatic strains, both Trump and Modi have exchanged positive public statements, suggesting the underlying strategic foundations of the U.S.-India relationship remain intact. Bajpaee noted that the two countries continue to view each other as critical partners—India as a strategic ally and the U.S. as a counterbalance to China’s regional influence.