India and China are longtime rivals, but US President Donald Trump’s aggressive tariff policies have unintentionally strengthened their relationship.
The reciprocal tariffs proposed by Donald Trump, which were intended to levy taxes on all parties that impose tariffs on US goods, have taken a new turn. Washington has now imposed a punishing 125 percent tax on all Chinese goods, turning the dispute between China and the US into a slugfest. Meanwhile, tariffs on other countries have been suspended.
China has made accommodative gestures toward India in this regard, calling for cooperation to combat the US’s “abuse of tariffs” and hegemonic actions.
The significance of India and China’s collaboration was emphasized by Chinese Foreign Minister Wang Yi, who compared their collaboration to performing the “dragon and elephant dance.” He maintained that in order to defend the rights of the Global South and counteract power politics, collaboration between the two biggest developing economies is crucial.
By encouraging Indian businesses to look into opportunities in China and importing more Indian goods, Beijing has also indicated its desire to improve trade relations with India.
Trump’s tariffs on Indian exports have caused India, which has historically sided with the US in trade, to reevaluate its economic policies. By reducing tariffs on certain American goods, New Delhi has attempted to ease tensions with Washington, but it is also looking into ways to strengthen its economic ties with China.
A recent post by Ms. Yu, a Chinese embassy official, stressed that there are no winners in these kinds of disputes and called on nations to embrace multilateralism while rejecting protectionism and unilateralism. She also reaffirmed China’s commitment to preserving the multilateral trade system and emphasized China’s substantial annual contribution to global economic growth, which amounts to about 30%.
“The foundation of the trade and economic ties between China and India is mutual benefit. The biggest developing nations in the region should unite in opposition to the US’s misuse of tariffs, which denies nations, particularly those in the “Global South,” their right to development.” The Embassy’s Delhi spokesperson, Yu Jing, stated on X.
The declaration follows President Xi Jinping’s April 1 meeting with Indian President Droupadi Murmu, in which he called for collaboration between China and India. Trump’s decision to impose an additional 50% tariff on Chinese goods, raising the overall tariff rate to 104%, coincides with the heightened trade tensions between the United States and China. Allies have warned of possible worldwide repercussions as a result of these actions, which have further strained ties between the two economic titans.
China’s statement has not yet received an official response from India. Nonetheless, after years of tense relations brought on by border disputes and trade imbalances, External Affairs Minister S. Jaishankar has observed that Indo-China relations are improving as a result of recent diplomatic attempts to reduce tensions.
India is currently experiencing less hardship from tariffs than China.
Trump has frequently admitted that Delhi is a “very big abuser of tariffs,” but it seems that the high import taxes are being held back by a closer relationship with Prime Minister Narendra Modi.
In addition to the baseline tariff of 10% announced for some goods, like steel, the US President announced “discounted” tariffs for India, which are “only” 26%.
Additionally, it’s possible that Trump will impose more taxes on pharmaceutical imports.
In 2024, India exported $89.91 billion worth of goods to the US; however, this year, industries like seafood and automobiles and auto parts, on which a separate 25% was announced, will suffer.
This changing dynamic demonstrates how Trump’s tariff policies are changing international alliances and forcing China and India to work together to address common economic issues.
