India’s hopes of securing relief from an additional 25% US tariff on its exports suffered a setback as the much-anticipated Alaska summit between US President Donald Trump and Russian President Vladimir Putin concluded without a clear agreement.
No Breakthrough on Ukraine Dispute
Despite a cordial atmosphere — marked by Trump’s warm welcome and Putin’s diplomatic nods towards America — the two leaders were unable to bridge their sharp differences over Ukraine. This unresolved issue overshadowed the summit’s broader agenda and left global markets, including India, facing fresh uncertainty.
At their joint press briefing, President Putin suggested that an “important agreement” was on the horizon. However, President Trump struck a more cautious tone, stating that while there had been “considerable progress,” no deal was finalized.
Implications for India
For India, the outcome is disappointing. New Delhi was counting on a positive resolution from the summit to soften Washington’s stance and avert the looming tariff hike. With no breakthrough in sight, Indian exporters remain exposed to the risk of higher duties, which could erode competitiveness in critical sectors like textiles, pharmaceuticals, and engineering goods.
The Road Ahead
Analysts believe that India’s trade negotiations with Washington will now face additional headwinds. The absence of clarity from the Alaska summit underscores how deeply geopolitical tensions, particularly surrounding Ukraine, are influencing global trade alignments.
While India continues to push for a balanced and mutually beneficial trade partnership with the US, the immediate future remains uncertain. Businesses and policymakers alike will be watching closely for the next moves from Washington and Moscow, which could shape the global trade order in the months ahead.