India, China urged to unite against US tariffs amid growing trade tensions

However, analysts question whether economic pragmatism can overcome deep-seated mistrust between the two Asian giants

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Amid rising US tariffs, China has urged closer trade ties with India to counter protectionist policies. Photo: Shutterstock

Published: 8:42pm, 12 Mar 2025Updated: 3:52pm, 13 Mar 2025

Beijing has called for closer trade cooperation with New Delhi to counter growing US tariffs on Chinese and Indian goods, but analysts are sceptical about whether economic pragmatism can overcome the deep-seated mistrust between the two Asian powers.

Chinese Foreign Minister Wang Yi emphasised the need for stronger economic ties with New Delhi on Friday, declaring that cooperation between the “dragon and the elephant” would accelerate the “democratisation of international relations” and enhance the Global South’s development and strength.

“This is the only path that truly serves the fundamental interests of the two countries. As important members of the Global South, we have the responsibility to take the lead in opposing hegemonism and power politics,” Wang told the media after attending the National People’s Congress, referring to the United States.

China’s Foreign Minister Wang Yi has urged that Beijing and New Delhi forge stronger ties. Photo: AP

The remarks follow US President Donald Trump’s decision to raise tariffs on Chinese imports from 10 to 20 per cent and his plan to impose reciprocal tariffs on India starting on April 2.

Pushan Dutt, an economics and political-science professor at INSEAD business school, said Trump’s disruptive global tariff policies had affected both allies and rivals.

India and China each face unique vulnerabilities. Trump’s reciprocal tariffs will adversely affect India’s high tariffs, while China struggles with deflation, a housing collapse, and weak domestic demand. Relying on exports to navigate these issues was risky if a global trade war emerged, Dutt said.

“This creates a unique opportunity for the two Asian giants to cooperate more on the economic front. India has a supply problem that China can provide. China has a demand problem that India can provide,” he added.