The Chinese embassy in New Delhi has accused Washington of “weaponising tariffs” by imposing a 50 percent import duty on Indian exports, declaring the move “unfair and unreasonable.” Ambassador Xu Feihong urged India and China to jointly resist trade wars even as analysts suggest Beijing may reap indirect gains amid the US-India standoff.
Xu delivered his criticism during a public address in New Delhi, accusing the United States of leveraging tariffs as a coercive tool and reminding listeners that the US “has long benefited from free trade.” He called the 50 percent levy a distortion of market norms and insisted that China opposes any form of economic bullying or unilateral pressure. He also proposed deeper India–China cooperation, including coordinated resistance to power politics and tariff aggression.
The 50 percent tariff is the result of two separate US measures: an initial 25 percent “reciprocal” tariff followed by a further 25 percent penalty linked to India’s continued imports of Russian crude oil. The combined effect impacts sectors such as garments, jewellery, footwear, chemicals and furniture—industries that account for a significant share of India’s US-bound exports.
Trade analysts warn that Indian exports to the US have already stumbled. A Global Trade Research Initiative study showed exports from May to August fell by about 22.2 percent, with even tariff-exempt goods like smartphones and pharmaceuticals seeing sharp contractions. September marks the first full month under the 50 percent regime, and further declines are widely anticipated.
India’s manufacturing and services PMI data also cooled in September, with composite business sentiment sliding on weaker export orders. One economist at HSBC noted that the tariffs likely dampened new export demand, though domestic orders showed modest resilience. The government has responded with reductions in GST rates on many consumer goods, hoping to shore up domestic demand.
Some in the Indian export community are appealing for urgent relief. The Gem & Jewellery Export Promotion Council has called on the government to relax export obligations and provide fiscal support, citing the role the industry plays in employment across Gujarat and Maharashtra. Meanwhile, India’s EXIM Bank is boosting credit lines and easing risk limits to help affected firms explore alternative markets, particularly in Africa.
Observers say China could benefit from the trade rupture between Washington and New Delhi in several ways. With India’s exporters strained in the US market, buyers may turn to alternative supply chains, including those anchored in China. Beijing’s vocal defense of India positions it as an advocate of free trade, enhancing its diplomatic posture across the Global South.
However, those potential gains do not come without risk. Elevated global friction could feed into inflationary pressures, supply chain disruptions, and trade retaliation from other affected parties. China’s calculus must balance leveraging opportunity and preserving its own export dependencies.
Diplomatic complexity underlies China’s stance. While offering public support for India, it must also manage strategic rivalry and border frictions. Xu’s message explicitly sought to dissociate lingering border issues from economic cooperation, underscoring that tariff and trade wars should not be conflated with territorial disputes.
India, for its part, appears to be shifting course. A growing priority is export diversification. At a recent trade show in Uttar Pradesh, participation from Latin American and African buyers surged, reflecting efforts to cultivate less tariff-sensitive markets. Corporations such as JK Tyre are redirecting deliveries via their Mexican units, sidestepping the US duty wall. Meanwhile, New Delhi’s commerce ministry is reportedly studying tariff cuts on select US import lines as part of a countermeasure strategy.
U.S. Flags “Turbulence” Even as It Seeks to Reassure Delhi 