Trump’s Tariff Shock Drives India Toward China
TIANJIN – India is turning to China to secure critical trade supplies as U.S. tariffs enforced by Donald Trump squeeze its economy and complicate its global partnerships.
Prime Minister Narendra Modi met Chinese President Xi Jinping on the sidelines of the Shanghai Cooperation Organisation (SCO) summit in Tianjin on August 31, with trade high on the agenda. The talks come just after Washington imposed a tariff of 50 percent on Indian goods. The move, part of President Donald Trump’s aggressive trade stance, has rattled New Delhi, which is now looking eastward for alternatives.
China has emerged as a vital partner, particularly in fertilisers, rare earth minerals, and advanced manufacturing inputs. Earlier this month, Beijing lifted restrictions on the export of Di-Ammonium Phosphate fertilisers, rare earth magnets, and tunnel boring machines—critical goods for India’s farm sector, auto industry, and infrastructure projects.
Shipments have already resumed, bringing temporary relief to farmers and industries that had faced soaring costs after earlier curbs drove fertiliser prices up by 40 percent. India depends on China for nearly 95 percent of its specialty fertiliser needs, with about 80 percent imported directly and the rest through intermediaries.
Yet the partnership remains fraught. Beijing’s sporadic restrictions on rare earth exports this year have disrupted electronics and auto supply chains, while delays in machinery shipments slowed infrastructure projects. Rare earth minerals—essential for batteries, motors, and advanced electronics—remain a sticking point in trade talks.
For India, the challenge is balancing its strategic ties with Washington against its economic reliance on Beijing. As Trump-era tariffs escalate and U.S. pressure over Russia continues, Modi’s outreach to Xi highlights New Delhi’s pragmatic pivot. Whether China relaxes its grip on exports in the coming months will determine how secure India’s industrial and agricultural sectors remain. (IANS)
