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How the U.S.-India Tariff Clash Strengthened China

by Daisy Mae D.
09/02/2025
in Tariffs & Duties

The White House expected India to concede to U.S. pressure. Instead, Indian Prime Minister Narendra Modi traveled to China, meeting President Xi Jinping at the Shanghai Cooperation Organisation (SCO) summit in Tianjin, a move that highlighted shifting dynamics in international relations.

President Donald Trump’s administration recently imposed tariffs of up to 50% on Indian exports, citing trade imbalances and market access concerns. Rather than signaling compliance, India’s leadership used the occasion to reinforce ties with China and other SCO members, underscoring New Delhi’s determination to maintain independent trade and foreign policy priorities.

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The SCO, which brings together more than 20 leaders from across Asia, has often been described as a loose coalition with competing interests among its members. India and Pakistan remain rivals, while China and India have historically faced border tensions. Yet, the summit provided a platform for dialogue, signaling the importance of multilateral forums in shaping new partnerships.

India’s position remains clear: domestic sectors such as agriculture are off-limits to external demands, and energy policy decisions will not be dictated by outside pressure. By attending the summit, Prime Minister Modi demonstrated that India values diversified global engagement and will not allow its partnership with any single country to become one-sided.

For China, hosting the gathering offered an opportunity to project leadership in the region and to highlight alternatives to U.S.-led frameworks. The summit showcased Beijing’s growing influence as it seeks to position itself as a central player in multipolar global governance.

The broader implications extend beyond South Asia. Participation from countries such as Turkey, Iran, and Central Asian nations reflects the SCO’s role as a platform where diverse regional interests converge. While the organization does not function as a binding alliance, it emphasizes cooperation on shared challenges and reinforces the idea that global leadership is increasingly distributed.

President Trump’s tariff policies toward India may have inadvertently strengthened China’s ability to showcase its diplomatic reach. The SCO summit in Tianjin served as a reminder that international partnerships are fluid and that strategic realignments often emerge in response to economic pressure.

#SupplyChainNews #TradePolicies #GlobalEconomy #IndiaChinaRelations #TariffsAndDuties

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