Saturday, March 29, 2025
New Delhi, April 9, 2025
Donald Trump’s aggressive tariffs on China—now totaling a staggering 104%—have triggered a fresh trade war between Washington and Beijing. But in a surprising twist, the fallout appears to be nudging India and China toward greater cooperation.
In a statement posted Tuesday, the Chinese Embassy in New Delhi called for unity between the two Asian giants. “The China-India economic and trade relationship is based on mutual benefit,” said Embassy spokesperson Yu Jing on X (formerly Twitter). “Faced with the United States’ abuse of tariffs that hinder development, especially in the Global South, the largest developing countries should stand together.”
The post also carried a clear warning for President Trump, cautioning that “trade and tariff wars have no winners” and urging all nations to reject unilateralism and protectionism in favor of true multilateralism.
China, which contributes nearly 30% to global annual growth, positioned itself as a defender of the international trade system, with Yu affirming Beijing’s intent to “continue working with the world to safeguard multilateralism.”
India has not yet officially responded to the Chinese statement.
This outreach follows Chinese President Xi Jinping’s own remarks on April 1, when he told Indian President Droupadi Murmu that India and China should deepen cooperation. That such overtures are coming from the top levels of Chinese leadership underscores how seriously Beijing views Trump’s tariffs.
On Wednesday, the White House confirmed Trump’s latest move—an additional 50% tariff—bringing total US duties on Chinese imports to 104%. The Chinese government has vowed to resist “American aggression… to the end.”
While India has also been targeted, the tariffs are far less severe. Trump has labeled India a “big abuser of tariffs,” but has maintained relatively warmer ties with Prime Minister Narendra Modi. As a result, India has only been hit with a “discounted” tariff rate of 26%, in addition to an existing 10% baseline on certain goods like steel.
Further penalties could still come, particularly targeting Indian pharmaceutical products. Already, sectors like seafood and auto parts—which face a separate 25% levy—are expected to see major export losses. Indian exports to the US totaled $89.91 billion in 2024, but experts predict a hit of up to $5.76 billion this year due to the tariffs.
Unlike China, India has chosen not to retaliate with tariffs of its own. Instead, New Delhi plans to explore trade dispute provisions that allow for relief if a partner takes steps to correct trade imbalances. Sources say India is open to reducing its own tariffs in certain sectors to maintain ties with the US.
India-China relations have been strained for years, particularly after the deadly Galwan Valley clash in June 2020. Tensions remained high, with both sides ramping up military deployments along the border. A breakthrough finally came in October 2024 with a border patrolling agreement, followed shortly by a meeting between Modi and Xi.
That agreement, coupled with Trump’s tariff war, seems to have initiated a tentative thaw—at least economically. Last month, China’s Foreign Minister urged India to join Beijing in resisting “hegemonism and power politics,” arguing that cooperation, not rivalry, is in their shared interest.
He emphasized that India and China must not let their border disputes define their overall relationship.
