Donald Trump's tariffs are doing, it appears, what decades of political and diplomatic wrangling could not, at least with any great degree of success - to get India and China to work together, to "make the dragon and elephant dance", as Chinese Foreign Minister Wang Yi said last month.
The US President's tariffs on China - now at a jaw-dropping 104 per cent after Beijing responded to the first round with a 34 per cent levy - have led to a second full-blown trade war between the two global giants, with the Chinese vowing to fight "American aggression... to the end". On Wednesday afternoon they slapped an extra 50 per cent tax on US imports, which are now 84 per cent more expensive.
Trump's tariffs, and the resulting 'game of chicken' with China's Xi Jinping, also appear to have led Beijing to make several conciliatory statements about New Delhi; the latest was Tuesday, when the Chinese Embassy called on India and China to "stand together to overcome difficulties".
"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 (in the area) should stand together..." Yu Jing, the spokesperson for the Embassy in Delhi, said on X.
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.
— Yu Jing (@ChinaSpox_India) April 8, 2025
China is a firm… pic.twitter.com/w3QuSCingL
The long post also seemed to contain a warning for Trump, telling the US President, "... trade and tariff wars have no winners. All countries should uphold the principle of extensive consultation, practice true multilateralism, (and) jointly oppose all forms of unilateralism and protectionism".
The embassy also underlined its position of strength vis-a-vis the global economy, pointing out China contributes to around 30 percent of annual global growth, on average. "We will continue to work with the rest of the world to safeguard the multilateral trade system..." Ms Yu's post said.
India has not yet responded to this statement, although External Affairs Minister S Jaishankar said the relationship between the two countries is moving in a "positive direction".
Ms Yu's X post followed a statement by President Jinping himself; on April 1, the Chinese leader told President Droupadi Murmu in Beijing that India and China should work together.
That calls for cooperation have come down from the highest level in Beijing is significant, even if it is apparent they were prompted by the flood of tariffs unleashed by the United States.
READ | Trump Raises Tariffs On China To 104%, Effective Now: White House
On Wednesday Trump made good on his threat of "additional 50 per cent tariffs". The White House confirmed that would take Washington, D.C.'s tariff total on Beijing to a staggering 104 per cent.
Trump's Tariffs On India
India's tariffs pain are not, at this time, quite as severe as they are for China.
Trump has acknowledged, repeatedly, that Delhi is a "very big abuser of tariffs", but it appears a friendlier relationship with Prime Minister Narendra Modi is keeping back the high import duties.
The US President announced "discounted" tariffs for India - 'only' 26 per cent, which will be added to the baseline 10 per cent announced for certain goods, such as steel.
READ | Donald Trump Announces 26% "Discounted Reciprocal Tariff" On India
There is also the possibility Trump will throw in additional taxes on import of pharmaceutical goods.
India exported goods worth $89.91 billion to the US in 2024, but this year sectors like seafood and vehicles and auto parts, on which a separate 25 per cent was announced, will take a hit.
NDTV Explains | Trump's 25% Auto Tariffs. What Are They, Who Is Affected?
But, unlike China, India has said it will not 'retaliate' and impose tariffs of its own, even if analysts expect a significant hit to exports to the US, by as much as $5.76 billion, this year.
READ | India To Avoid Retaliation On US Tariffs, Will Instead Focus On...
A government official told Reuters Delhi will focus on a clause that offers a possible reprieve for trading partners who "take significant steps to remedy non-reciprocal trade arrangements".
Delhi, sources have said, is also open to cutting its existing tariffs in certain cases.
India-China Ties After Galwan
Relations between China and India have been tenuous, at best, and downright hostile more often than not, particularly after violence in Ladakh's Galwan Valley in June 2020 prompted a worrying build-up of military forces along the border. It wasn't till October last year that a patrolling deal was negotiated.
NDTV Explains | India-China Border Patrol Deal: What It Means, Why It's Important
The agreement seemed to trigger a thaw in India-China ties - underscored by a meeting between Prime Minister Narendra Modi and Mr Jinping days after it was announced - that seems to have carried over to the economic front, even if helped by the avalanche of tariffs levied by Trump.
Last month China's Foreign Minister called on New Delhi and Beijing to work together and "take the lead in opposing hegemonism and power politics". He also said, "Supporting, instead of wearing each other down, and strengthening cooperation... is in our fundamental interests."
He also emphasised the meeting between Mr Modi and Mr Jinping, and stressed, "We should never allow bilateral relations to be defined by the boundary question..."
With input from agencies
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