Be it China or America, both want India's support amid tariff war

US President Donald Trump is waging a war on tariffs. In this war, their strong attack is on China. There is a competition between the two countries as to who imposes more tariffs on whom. India's importance has also increased in this war on tariffs. China has already said that it and India can get out of the challenges of tariffs together, while now the US is also seeking India's support in this fight. US Treasury Secretary Scott Besant said that India is our important trade partner.The trade war between China and the US has focused attention on India, with both sides courting its support. US Treasury Secretary Scott Besant regards India as an important trading partner, whereas China has mooted a common front against US tariffs.

Major Developments

•  US Tariffs on China: The US has imposed 125% tariffs on Chinese imports, and China has retaliated with 34% levies.
• India's Stance: The Commerce and Industry Minister, Piyush Goyal, restates the fact that the government is pursuing steps in India's best interests without panic.
•  China's Initiative: The Chinese Embassy in India recommends that India and China cooperate to tackle the US tariff issues, referring to mutual gains in their trade and economic relations.

Implications of global trade

• Trade Shifts: Tariffs have been imposed on the US's trade deficit nations by the US, including India (26%) and China (104%).
•  Pharmaceuticals: The US will be announcing tariffs on pharmaceuticals that will hit India and China, the largest suppliers of generic medicine.
•  US-Vietnam Trade Deal: The US and Vietnam agreed to initiate trade negotiations after the removal of 46% tariffs from Vietnam by the US.

Economic Impact

India's Finance Minister Nirmala Sitharaman points to difficulties caused by US trade tariffs, as the Reserve Bank of India lowers interest rates to spur growth.