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'Trade, tariff wars have no winners': China seeks to ally with India against Trump's levy blitz
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  • 'Trade, tariff wars have no winners': China seeks to ally with India against Trump's levy blitz

'Trade, tariff wars have no winners': China seeks to ally with India against Trump's levy blitz

FP News Desk • April 9, 2025, 09:56:02 IST
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Counting existing levies imposed in February and March, that would take the cumulative tariff increase for Chinese goods during Trump’s second presidency to 104 per cent

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'Trade, tariff wars have no winners': China seeks to ally with India against Trump's levy blitz
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Hours after US President Donald Trump imposed a whopping 104 per cent tariffs on China, Beijing sought to collaborate with India to mitigate the effects of US levies that have disrupted global markets.

China—Washington’s top economic rival but also a major trading partner—will be hardest hit. Since Trump returned to the White House, tariffs have been imposed on its products.

Chinese Embassy spokesperson Yu Jing said, “China-India economic and trade relationship is based on complimentarity and mutual benefit. 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.”

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She added, “Trade and tariff wars have no winners. All countries should uphold the principles of extensive consultation, practice true multilateralism, jointly oppose all forms of unilateralism and protectionism."

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Tariff war escalates as China imposes additional levy of 50%, says will charge 84% on US imports Tariff war escalates as China imposes additional levy of 50%, says will charge 84% on US imports China's tit-for-tat 84% tariffs on US imports take effect hours after fresh Trump levy China's tit-for-tat 84% tariffs on US imports take effect hours after fresh Trump levy

China's economy is underpinned by a system that ensures steady growth, and produces positive spillovers. Chinese manufacturing is built on a complete and continually upgrading industrial system, sustained investment in R&D, and a strong focus on innovation.

China is a firm… pic.twitter.com/w3QuSCingL

— Yu Jing (@ChinaSpox_India) April 8, 2025

Tariffs on China

Despite Beijing’s warning that Trump’s tariffs will be met with a strong response, Potus forged ahead with tariffs of over 100 percent against Chinese goods.

The US president believes his policy will revive America’s lost manufacturing base by forcing companies to relocate to the United States.

Trump had originally set a 34 percent additional tariff on Chinese goods, but raised the levies after Beijing refused to withdraw its retaliatory measures.

Counting existing levies imposed in February and March, that would take the cumulative tariff increase for Chinese goods during Trump’s second presidency to 104 percent.

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Trump insisted the ball was in China’s court, saying Beijing “wants to make a deal, badly, but they don’t know how to get it started.”

India-China trade

As the trade war escalated, both China and India sought to mitigate its adverse effects. China made concessions by easing restrictions on certain Indian exports, such as non-Basmati rice and anti-cancer drugs, and agreed to share flood-season river flow data. These measures were part of China’s broader strategy to avoid opening multiple fronts amid its trade conflict with the US.

Furthermore, Chinese tech companies like Haier, Lenovo and Hisense are considering the possibility of exporting goods to the US via the Indian markets and factories to avoid being subject to higher tariffs and enjoy New Delhi’s relatively lower levies.

With inputs from agencies

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