By Admin 
Business tension between America and India seems to be deepening once again. The decision of US President Donald Trump imposing 25% additional tariffs on India’s goods has created a stir in political and diplomatic circles. The move is being criticized all -round, and now China has also openly come out in support of India. The Chinese ambassador has targeted Trump as a “crook” and described it as a threat to the global trade system. This incident has happened at a time when speculation about Prime Minister Modi’s possible China visit is also sharp.
America’s 50% tariff on India
US President Donald Trump has announced an additional 25% tariff on India, which has now increased the total fee to 50%. This decision has been taken due to India’s continuation of oil trade with Russia. The White House said that this decision has been taken in response to India’s “frequent inaction and vengeance”. This tariff can affect India’s exports that already depend on a large market like America.
Chinese ambassador’s sharp comment: Trump said “crooks”
Chinese Ambassador to New Delhi, Shoo Faihong, on Thursday criticized US President Trump and called him a “crook”. He wrote without naming X, ‘If the crook is given an inch, he takes a mile.’ He also shared a part of the recent phone call between Chinese Foreign Minister Wang Yi and the Chief Advisor of the President of Brazil. In this conversation, Wang Yi said, ‘The use of tariffs to suppress other countries is a violation of the Charter and it weakens the rules of the World Trade Organization (WTO).’
India and China: Strategic rival, still in touch
Although India and China are rival to each other for strategic impact in South Asia, the two countries also communicate with each other on the global stage. According to sources, Prime Minister Narendra Modi can visit China in late August. If this journey takes place, it will be Modi’s first visit to China after 2018. In October 2024, Modi and Chinese President Xi Jinping met in Russia for the last time.
Impact of tariff on India: Export falls, GDP injuries
According to Bloomberg Economics, the total tariffs imposed by the US may decline by up to 60% in India’s exports. This is likely to decline in India’s GDP by about 1%. The Reserve Bank of India has estimated a growth rate of 6.5% in FY 2026, which is much lower than the average of the previous years.
Which areas will be affected?
The new tariff can almost stop the export activity of labor-dominated areas such as gems and jewelery, textiles and shoe industries. This decision is likely to be effective within 21 days.
India expressed strong opposition
The Government of India has termed the US move as unfair and unjust. The government criticized Trump and said that it is wrong to target India in this way, while many other countries are also buying oil from Russia.