The United States’ decision to impose steep 50 percent tariffs on Indian imports has triggered strong reactions from both India and China, intensifying global trade tensions. The move, announced on September 8, has been criticized by Beijing as unfair and unreasonable, while New Delhi has begun preparing countermeasures to protect its exporters.
A senior Chinese envoy condemned Washington’s tariff strategy, stating that the U.S. had long benefited from free trade but was now weaponizing tariffs to extract excessive costs from trading partners. The envoy stressed that Sino-Indian relations remained unaffected by the development and underlined cooperation on shared concerns, including counterterrorism. He also highlighted upcoming steps to improve bilateral ties, such as the resumption of direct flights and progress in border discussions.
In India, Finance Minister Nirmala Sitharaman confirmed that the government is working on a relief package to support exporters hit by the tariffs. She also noted that the rupee’s performance is being closely monitored amid uncertainty in the global economic environment. India has already taken its complaint to the World Trade Organization, challenging the legality of U.S. duties on copper exports.
The trade standoff has been accompanied by sharp political rhetoric. Former U.S. trade adviser Peter Navarro issued a warning that the dispute “won’t end well” for India, repeating his earlier “Maharaja” remark that has drawn criticism in New Delhi. Meanwhile, External Affairs Minister S. Jaishankar, speaking at a BRICS meeting on September 8, emphasized the need to keep global trade open and predictable, urging member states not to further complicate the situation.
On the domestic front, Prime Minister Narendra Modi has called on ruling coalition lawmakers to strengthen the “Swadeshi” pitch by organizing local fairs to promote Indian-made goods, signaling a renewed push for self-reliance. At the same time, India is accelerating trade talks with partners including Qatar, Oman, and the European Union to reduce dependence on the U.S. market.
In Washington, President Donald Trump signed an executive order granting tariff exemptions and zero duties to allied partners who align with U.S. industrial trade priorities. However, a federal appeals court recently struck down key parts of Trump’s tariff measures as unlawful under the International Emergency Economic Powers Act. The administration has appealed to the Supreme Court, arguing that lifting tariffs would pose severe risks to the U.S. economy. Legal experts suggest that the court may be skeptical of broad executive powers, raising doubts over the future of Trump’s trade policy.
The unfolding dispute underscores the fragile state of global trade, with India caught between managing domestic economic stability and navigating unpredictable U.S. policies. With legal battles in the United States, WTO proceedings, and ongoing diplomatic engagements, the trajectory of the tariff confrontation remains uncertain.