The export sector is facing a deepening crisis due to the 50% tariff imposed by the United States on India. In the meantime, China has opposed the Trump administration's decision and offered economic cooperation to India. India is also taking steps to improve relations with China, Russia, and the European Union and to explore new markets to compensate for this loss.
US Tariffs: President Trump's decision to impose a 50% tariff has put India's labor-intensive sectors, including leather, in crisis. The US court has also declared it illegal. Following this, the Indian government has begun searching for new markets and partnerships. Meanwhile, Beijing stated on Monday that by opposing the US's "unreasonable" tariffs, India and China should jointly combat it. The Chinese ambassador called for increased economic cooperation, stating that both countries should tackle this challenge together.
Pressure on Indian Industries due to US Tariffs
The Trump administration has imposed tariffs of up to 50 percent on Indian exports. The most significant impact has been on sectors like leather, textiles, and handicrafts. These are industries that employ a large workforce, and a substantial portion of their income depends on orders from the US. The sudden increase in tariffs has created a major crisis for these sectors. Businessmen say that if relief is not provided soon, the livelihoods of millions could be at risk.
Government Assurances
The central government has assured affected industries that steps will be taken to compensate for their losses. Officials from the Ministry of Commerce have clarified that India will no longer be solely dependent on the US market. New trade agreements are being prepared with the European Union, African, and Latin American countries. Additionally, India is redirecting its exports towards Russia and Southeast Asian countries.
China Says – Let's Stop US Tariffs Together
China has also bly opposed the US tariffs. Chinese Ambassador Xu Feihong stated at an event held on Monday that the US has imposed unreasonable tariffs on emerging economies like India and China. He described it as a policy of using tariffs as a "weapon." The ambassador clearly stated that neither India nor China can face this challenge alone. Therefore, it is time for both countries to work together and give new direction to their economic relations.
India and China have had tense relations for a long time. Friction has persisted between the two countries due to border disputes and security-related issues. However, under US pressure, new initiatives are now being taken on the economic front. The government has indicated that restrictions on some Chinese products and apps may be eased. Furthermore, there is potential for increased cooperation in the digital and manufacturing sectors. Experts believe that if India and China form a common trade strategy, it could prove to be a major blow to the US.
New Picture on the Global Stage
The debate surrounding US tariffs has also intensified on international forums. Even US courts have declared them illegal. The European Union and several other countries have already opposed this policy. Now, the coming together of India and China can present a new picture in the global trade order. Experts say that if cooperation between the two large economies increases, the US tariff strategy will not be sustainable.
Industries' Concerns During Festive Season
The festive season has begun in India, a time when export orders are of utmost importance. The leather and textile industries had expected to receive a large volume of orders this time, but US tariffs have exacerbated their difficulties. Business organizations say that if the government and international partners do not take swift action, small industries could face significant losses.
