Trump’s hardline trade tariffs have prompted a global reset, with countries scrambling to shield their economies and reimagine alliances. The ripple effect of Trump’s trade war has reshaped economic friendships and spurred fresh Global partnership—all with sharp shifts at major international summits.
Tariffs Ignite Global Trade Turbulence
When Trump imposed sweeping tariffs on allies, Europe, Japan, and India felt the shock. India, hit with 50% tariffs due to ties with Russia, faced a predicted GDP drop of 0.5%. Canada, Mexico, and the EU fired back with their own tariffs or tough negotiations—EU leaders settled for a compromise 15%, just enough to dodge a trade war. Countries are looking for ways to lessen reliance on USA exports.
BRICS & SCO: Power Moves in Tianjin
The spotlight then shifted to China, where the BRICS and SCO summits gathered leaders under one roof. In Tianjin, China, India, and Russia found common cause against US pressure, strengthening diplomatic and economic ties. They rolled out plans for new energy projects and regional banks, laying the foundation for a more united Eurasian front.
Redrawing the Map of Friendship
The trilateral bond between China, India, and Russia is now reshaping the global playing field. India’s massive oil imports from Russia and revived relations with China show how old partnerships break and new ones form in response to protectionism. These moves highlight the trio’s push toward multipolar cooperation—more voices, less dependence on the US.
FTAs Spark a Global Trade Renaissance
As tariffs bite, the world turns to Free Trade Agreements. India leads with fresh FTAs alongside Switzerland (EFTA), EU, Chile, New Zealand, UK, and even the US. Deals already exist with Japan, Singapore, South Korea, UAE, Australia, Malaysia, and Sri Lanka, while the Eurasian Economic Union races to expand its own network. These FTAs signal a race to build resilience and open new markets, countering the tightening grip of US trade measures.
Alliances in Flux: A Fragmented Future
In all, Trump’s tariffs have triggered a fragmented world trade system. Allies seek exceptions, former friends become closer rivals, and summits like BRICS and SCO create new coalitions. China, India, and Russia’s growing closeness and the uptick in FTAs are crafting a fresh web of relations in a world where certainty is in short supply.