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Trump’s Tariff Escalation Spurs Rare China-India Alignment Amid Broader Trade Tensions
New Delhi, April 8:
Amid ongoing tensions in their bilateral relationship, China and India have found unexpected common ground in response to escalating trade measures imposed by former U.S. President Donald Trump. The imposition of steep tariffs—now totaling 104% on Chinese goods—has prompted Beijing to issue conciliatory statements toward New Delhi, urging solidarity among developing economies.
China’s recent outreach follows remarks by its Foreign Minister Wang Yi, who called for the two Asian powers to “make the dragon and elephant dance.” The sentiment was echoed again on Tuesday in a statement by the Chinese Embassy in New Delhi, highlighting the mutual benefits of China-India trade and calling for cooperation in the face of rising global protectionism.
“China-India economic and trade relationship is based on mutual benefits. Facing the US’ abuse of tariffs, which deprives countries, especially in the Global South, of their right to development, the largest developing countries should stand together,” said Yu Jing, the Embassy spokesperson, on social media platform X.
The Embassy also issued a veiled caution to the U.S., stating that “trade and tariff wars have no winners” and called on all nations to support multilateralism over unilateral trade policies. The message reinforced China’s positioning as a key driver of global economic growth, claiming a 30% contribution to worldwide GDP growth on average.
India has not officially responded to these overtures, though External Affairs Minister S. Jaishankar recently described India-China relations as moving in a “positive direction.” Notably, Chinese President Xi Jinping also extended an invitation for collaboration during a conversation with President Droupadi Murmu earlier this month, suggesting growing diplomatic momentum despite longstanding geopolitical strains.
Impact of Trump’s Tariffs on India
While the bulk of Trump’s tariff escalation has been aimed at China, India has also come under scrutiny. Despite past references to India as a “major tariff abuser,” Trump has opted for a softer approach, imposing a 26% tariff—on top of a baseline 10%—on selected goods such as steel. Further measures, including potential tariffs on pharmaceutical imports, remain under consideration.
In 2024, India exported goods worth $89.91 billion to the U.S. Key sectors such as seafood and automotive components are expected to bear the brunt of new U.S. tariffs, with analysts forecasting a possible $5.76 billion decline in exports this year. However, India has chosen not to retaliate, instead signaling a willingness to negotiate. According to a government source cited by Reuters, Delhi may seek relief under a provision that allows for leniency if countries demonstrate efforts to address trade imbalances. The Indian government is also reportedly open to revising existing tariffs on certain imports.
Diplomatic Context: Galwan Valley and Beyond
Tensions between India and China have remained high since the June 2020 Galwan Valley clash, which triggered a prolonged military standoff along the Line of Actual Control in Ladakh. A tentative de-escalation agreement was reached in October 2024, leading to a rare bilateral meeting between Prime Minister Narendra Modi and President Xi Jinping. The diplomatic thaw now appears to be extending into the economic domain, with mutual concerns over U.S. trade policy potentially serving as a catalyst.
China’s Foreign Minister has also stressed the importance of resisting “hegemonism and power politics” and emphasized that India-China relations should not be solely defined by the boundary dispute. He called for strategic collaboration in multilateral forums and reiterated support for the continued normalization of relations.
As the global trade landscape grows increasingly turbulent, particularly under Trump’s protectionist resurgence, the India-China dynamic may see a shift—prompted less by bilateral resolution and more by shared strategic imperatives in navigating an uncertain international economic order.
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