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US-India trade ties worsen as Trump imposes 50% tariff on Indian goods over Russian oil imports. China backs India, slamming the US move as a WTO violation. Beijing criticizes Trump’s tactics, calling them unfair and harmful to global trade norms.
PM Modi at the center with Putin and Xi Jinping (Image Source: Internet)
New Delhi: The trade relations between the US and India have once again become tense. US President Donald Trump has decided to impose an additional 25% tariff on Indian goods, taking the total tariff to 50%. This step has been taken because India continues to buy oil from Russia. The US has seen this as India's "inaction and retaliation." This decision can have a serious impact on India's exports, especially those industries that depend on a big market like the US.
China raised its voice in support of India.
China has openly given a statement in favor of India in this matter. Chinese Ambassador to New Delhi Xu Feihong strongly criticized Trump and even called him a "crook." He said that this step of the US is against the rules of the World Trade Organization (WTO), and it weakens the global trade system. China's Foreign Minister Wang Yi also said that using tariffs to suppress other countries is a violation of the UN Charter.
India-China relations: Cooperation amid rivalry?
India and China have long competed for dominance in Asia, but despite this, both countries are communicating with each other on global issues. According to reports, Prime Minister Narendra Modi may visit China in late August. If this visit happens, it will be Modi's first visit to China since 2018. Earlier, Modi and Chinese President Xi Jinping met in Russia in October 2024.
The Indian economy will be affected badly.
US tariffs will have a direct impact on India's exports. According to Bloomberg Economics, this could cause India's exports to fall by up to 60% and GDP to decline by 1%. The Reserve Bank of India has projected a growth rate of 6.5% for FY26, which is much lower than in previous years.
Which industries will suffer the most?
All these are labor-intensive industries, whose exports are heavily dependent on the US. If this tariff is implemented, there is a risk of large-scale job loss in these sectors.
Indian government expressed strong opposition.
The Indian government has called this decision of the US "unfair and unjust." They say that it is wrong to target India alone, while many other countries are also buying oil from Russia.
This move of the US will not only affect India-US relations but will also harm global trade. China's support for India may be a strategic turning point, but it will be interesting to see if this cooperation deepens in the future. In the meantime, India needs to diversify its exports and increase its dependence on other markets to avoid such shocks.
