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Updated April 8th 2025, 22:20 IST

Stand Together: China Turns to India As Trump Tariffs Give Dragon The Biggest Jolt

As the US-China tariff war escalates, Beijing urges India to stand united against Trump's trade policies, calling for cooperation between 2 Asian powers.

Reported by: Surabhi Shaurya
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Stand Together: China Turns to India As Trump Tariffs Give Dragon The Biggest Jolt
Stand Together: China Turns to India As Trump Tariffs Give Dragon The Biggest Jolt | Image: AI Generated

As the tariff war between the United States and China intensifies, Beijing is extending a strategic olive branch to New Delhi, urging India to stand together with China against what it described as Washington’s "unilateral bullying" and economic aggression. In a strong message posted on X (formerly Twitter), Yu Jing, spokesperson of the Chinese Embassy in India, said,"Facing the U.S. abuse of tariffs, which deprives countries, especially Global South countries, of their right to development, the two largest developing countries should stand together to overcome the difficulties.”

The statement comes just hours after US President Donald Trump threatened to impose an additional 50% tariff on Chinese imports unless China rolls back a recent 34% hike. 

"Yesterday, China issued Retaliatory Tariffs of 34%, on top of their already record setting Tariffs, Non-Monetary Tariffs, Illegal Subsidization of companies, and massive long term Currency Manipulation, despite my warning that any country that Retaliates against the U.S. by issuing additional Tariffs, above and beyond their already existing long term Tariff abuse of our Nation, will be immediately met with new and substantially higher Tariffs, over and above those initially set. Therefore, if China does not withdraw its 34% increase above their already long term trading abuses by tomorrow, April 8th, 2025, the United States will impose ADDITIONAL Tariffs on China of 50%, effective April 9th. Additionally, all talks with China concerning their requested meetings with us will be terminated! Negotiations with other countries, which have also requested meetings, will begin taking place immediately. Thank you for your attention to this matter!" Trump wrote on TruthSocial.

The move would push total U.S. tariffs on Chinese goods to a staggering 104%, the highest in history, raising concerns about global trade stability and inflationary pressure.

Earlier in the day, China's Commerce Ministry responded by calling the new tariffs “a mistake on top of a mistake” and vowed to “fight to the end,” calling the American approach “blackmail” and a threat to the global multilateral trade system.

“The countermeasures China has taken are aimed at safeguarding its sovereignty, security and development interests, and maintaining the normal international trade order. They are completely legitimate. The U.S. threat to escalate tariffs on China is a mistake on top of a mistake and once again exposes the blackmailing nature of the U.S. China will never accept this. If the U.S. insists on its own way, China will fight to the end," the ministry said.

India in a Strategic Spotlight

While the standoff is primarily between Washington and Beijing, China's public call to India marks a shift in its regional diplomatic posture. With both countries being major developing economies and key players in global manufacturing, any form of collaboration, or even alignment, between the two could shift the balance in global trade dynamics.

“China-India economic and trade relationship is based on complementarity and mutual benefit,” Yu Jing wrote, underlining the shared interests of the two Asian giants in safeguarding the WTO-centric multilateral order.

Could India Emerge as a Winner in the US-China Trade War?

As the trade war between the United States and China continues to escalate, India may find itself in a strategically advantageous position. With China, the world's second-largest economy and Asia’s manufacturing powerhouse, locked in a growing tariff battle with Washington, the ripple effects could open new doors for India on the global trade stage.

If Beijing refuses to back down and President Donald Trump follows through on his threat to impose an additional 50% tariff on Chinese goods, it would take the overall duty to a staggering 84%. Such a move would severely disrupt China’s export economy.

In 2024, trade between the U.S. and China amounted to approximately $582.4 billion. Of this, U.S. exports to China stood at $143.5 billion, while imports from China totaled $438.9 billion, leading to a trade deficit of $295.4 billion. If new tariffs push the cost of Chinese goods up by nearly double, it would significantly hurt Chinese businesses and make their products far less competitive in the American market.

India’s Moment to Shine?

In this evolving scenario, India could emerge as a major beneficiary. As Chinese products become costlier, Indian goods may gain a competitive edge by being more affordable and accessible to U.S. consumers.

There’s also growing speculation around a potential Bilateral Trade Agreement (BTA) between India and the United States. With discussions already in progress and Trump urging nations to initiate trade negotiations promptly, such a pact could prove to be a game-changer for Indian exporters.

If the BTA results in lower tariffs for Indian goods, it would offer India a significant advantage over other trading partners and cement its role as a preferred alternative to China.

While China’s outreach is being viewed with cautious interest in New Delhi, trade experts say this may be an opportunity for India to play a more central role in shaping the future of global trade frameworks. However, any closer engagement with China must be balanced against ongoing strategic and border sensitivities.

Published April 8th 2025, 22:10 IST