SCO Summit 2025: Can the bloc counter Trump’s tariff war? What India wants to tell the US standing alongside Xi and Putin

China is hosting the Shanghai Cooperation Organisation (SCO) Summit in Tianjin from August 31 to September 1. All eyes are set at the meeting between Indian Prime Minister Narendra Modi, Chinese premier Xi Jinping and Russian PM Vladimir Putin. In an uncertain Trumpian world, the SCO can play a pivotal force to connect the Asian trifecta - India-China-Russia and offer the world a compelling alternative to the traditional Western-led economic order. Aiming for a multipolar global framework, while also throwing its own hegemonic weight, the three countries along with all other SCO member countries, will meet on Aug 31 to counter the unpredictability of Washington's trade actions. So, how exactly can SCO be crucial amid Trump's tariff war: let's analyse.

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Economic realignment, de-dollarization and pushback against protectionism

The SCO member countries aim for economic integeration by providing alternatives for a connected economic order. One of its key objectives is to reduce dependency on Western financial mechanisms, particularly the U.S. dollar. While Trump has issued multiple threats to nations for finding an alternation to US dollar, the SCO nations have started discussions around alternative currencies like the yuan and regional payment systems. This is done keeping in mind to protect the member economies from external economic shocks like tariffs or sanctions. The organization’s emphasis on enhancing economic resilience and building sustainable supply chains among member nations helps cushion the effects of external tariffs.

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The SCO has always criticised the unilateral trade practices and pressure tactics. It has demanded reform in global trade bodies like the World Trade Organisation (WTO) and batted for a rules-based order that promotes transparency and fair-play, and one that is free of economic coercion. The SCO is also seen as a strong geopolitical statement against the West for its 'Global South consolidation' message. Amid America's massive protectionism policies, SCO can be a global trading system showing unity, resilience, and a shared desire for a new economic direction.

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India's crucial role in SCO and message to the West

For India, the SCO becomes a platform to balance its geopolitical interests and pursue an independent foreign policy. Reeling under the pressure of Trump's 50 per cent tariff, New Delhi is definitely seeing the SCO Summit in Tianjin as an opportunity to send a message to the US that India's independent foreign policy will help it to realign with friends and foes alike, even as America continues to alienate the world powers. Through this platform, India is exploring ways to reduce tensions with China while also reinforcing its long-standing ties with Russia. Time and again, India has maintained that its purchase and trade are based on national interests. So, when the Indian PM meets the Russian counterpart at the SCO Summit, the White House might be displeased, but the message will be sent: that India won't bow down to pressure and will continue to build its ties with nations as per its own interests. Similarly, when PM Modi meets China's Xi Jinping, it will send a message to the US that it cannot coerce New Delhi on the basis of its fractured relations with neighbours. By participating in the SCO, India is also keeping its options open beyond Western-led groupings like the Quad, signaling that it is willing to cooperate with both East and West based on national interests and changing geopolitical dynamics.