Saturday, March 29, 2025
In a major trade development, China has announced that it will no longer levy tariffs on Indian pharmaceutical companies, giving a significant boost to India’s pharma exports. Until now, Beijing had imposed a 30% tariff on Indian medicines. With the latest decision, Indian drug makers can export to China duty-free.
The move comes as a sharp contrast to US President Donald Trump’s stance, who recently imposed tariffs of up to 100% on Indian pharmaceutical products. Analysts view China’s decision as a direct counter to Trump’s trade policy, especially at a time when global alignments are shifting.
Observers believe this step signals deeper coordination between India, China, and Russia, who have increasingly aligned positions since their cooperation at the SCO Summit. While India has remained largely non-committal on Trump’s aggressive tariff measures, and Russia continues to defy US warnings over its war strategy in Ukraine, Beijing’s move is seen as an attempt to undermine Trump’s pressure campaign.
By eliminating tariffs, China has effectively opened its market to Indian pharmaceutical giants, potentially reshaping trade flows in the sector. Experts suggest this could also accelerate joint projects and strengthen economic interdependence between New Delhi and Beijing.
The announcement follows the recent visit of the Chinese Ambassador to India, during which he urged Indian firms to explore investment opportunities in China. After that meeting, Indian External Affairs Minister S. Jaishankar also took initiatives to resume stalled trade talks.
China has repeatedly voiced opposition to Washington’s 50% tariffs on Indian companies and has maintained a relatively softer stance toward India in trade matters. By zeroing tariffs on pharmaceuticals, Beijing is signaling both economic outreach to India and a strategic rebuke to Trump’s policies, potentially escalating trade tensions between Washington and Beijing.
