China Slams US' 50% Tariff On India As 'Unfair And Unreasonable' - Is Beijing Quietly Gaining From Trump's Trade War?

(MENAFN- Live Mint) China has accused the United States of“weaponising tariffs” after Washington slapped a 50% duty on Indian imports, escalating a trade clash that threatens to redraw supply chains across Asia. Speaking in New Delhi, Chinese Ambassador Xu Feihong called the move“unfair and unreasonable”, even as analysts suggest Beijing could quietly benefit from the deepening rift between Washington and New Delhi.

China calls for closer India-China cooperation

Ambassador Xu also stressed the importance of bilateral cooperation between India and China, saying that the two leading emerging economies should“prioritise development and foster mutual support and success.”

He cited statements from Chinese President Xi Jinping and Indian Prime Minister Narendra Modi, noting that Modi has asserted“India-China cooperation will make the 21st century a genuine Asian century,” the South China Morning Post reported.

How the 50% tariff came about

The 50% tariff results from two rounds of US trade measures. Initially, the US imposed a 25% reciprocal tariff on several Indian goods, Reuters reported. A further 25% penalty tariff was applied in response to India's continued imports of Russian crude oil, raising the effective duty rate on affected Indian exports to 50%, according to Reuters and The Guardian. Sectors most affected include garments, gems and jewellery, footwear, sporting goods, furniture, and chemicals, Reuters added.

Economic impact of US tariffs on India

India's exporting industries, particularly in labour-intensive sectors like textiles, jewellery, footwear, and leather, are facing significant competitive disadvantages, according to The Guardian and Reuters. Analysts project that exports to the US from these sectors could fall by up to 70%, while the tariff regime has also raised concerns about long-term investment sentiment in India. Some estimates suggest the measures could shave off 0.8 percentage points from India's GDP growth this fiscal year, Reuters reported.

Is China benefiting from the dispute?

China appears to be gaining a relative advantage amid the US-India tariff clash. According to the South China Morning Post, Beijing has publicly defended India against what it frames as US protectionism, boosting its image as a proponent of free trade and multilateralism. Some Indian exports that have become less competitive in the US may instead find markets via China or regions where China already has strong trade linkages, The Economic Times noted.

Strategically, India's perception of punitive US tariffs may encourage it to shift trade and alliances, potentially giving China opportunities to expand imports and strengthen cooperation, according to Moneycontrol.

Additionally, China has developed resilience against trade tensions, making such shocks less disruptive compared to India, the China Leadership website reported.

Potential risks for China

Despite relative gains, China is not immune to challenges. Global trade disruptions affect all major exporters, while inflationary pressures and supply chain disruptions could impact Chinese businesses.

Furthermore, openly opposing US policy carries diplomatic risks, as Washington DC could respond with countermeasures.

What might happen next for India-China-US geopolitical tension?

There is talk that the US may ease some duties, particularly the 25% penalty tariffs, Reuters reported. India is also likely to accelerate efforts to diversify export markets and implement reforms to improve competitiveness. Domestic support, such as subsidies, tax relief, or logistical assistance, may be provided to exporters. Moreover, China's public support could pave the way for deeper India-China economic engagement, though strategic and security considerations remain.

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