China has accused the United States of “weaponising tariffs” after Washington imposed a 50% duty on Indian imports, escalating a trade dispute that could reshape supply chains across Asia. Speaking in New Delhi, Chinese Ambassador Xu Feihong called the US move “unfair and unreasonable” while highlighting opportunities for stronger India-China economic cooperation.

US tariffs on India explained

The 50% tariff is the result of two US trade measures. Initially, a 25% reciprocal tariff was imposed on certain Indian goods. A further 25% penalty tariff was added in response to India’s continued imports of Russian crude oil, effectively raising duties on affected Indian exports to 50%.

Sectors most impacted include:

  • Garments and textiles
  • Gems and jewellery
  • Footwear
  • Sporting goods
  • Furniture and chemicals

Analysts warn that exports to the US from these sectors could fall by up to 70%, potentially reducing India’s GDP growth by 0.8 percentage points this fiscal year.

China positions itself amid US-India trade clash

Ambassador Xu emphasised that India and China should prioritise development and foster mutual support, citing statements from President Xi Jinping and Prime Minister Narendra Modi. He noted that Modi has said “India-China cooperation will make the 21st century a genuine Asian century.”

Observers suggest that Beijing may benefit indirectly from the dispute. Indian exports facing US tariffs could find alternative markets via China, while China’s pro-India stance on trade boosts its image as a supporter of free trade and multilateralism.

Risks and strategic considerations

While China may gain a relative advantage, it is not immune to global trade disruptions. Supply chain shocks, inflationary pressures, and potential diplomatic backlash from Washington remain key risks.

Experts also note that India may accelerate export diversification, implement reforms to improve competitiveness, and provide domestic support through subsidies, tax relief, or logistical assistance to affected sectors.

Outlook for India-China-US dynamics

The trade clash has geopolitical implications, with potential easing of US duties on the horizon. Meanwhile, China’s public support for India could pave the way for deeper economic engagement, although strategic and security considerations will continue to influence bilateral relations.