US President Donald Trump's aggressive tariff policies have inadvertently fostered closer ties between India and China, two traditional rivals.

Donald Trump's reciprocal tariffs, which was meant to impose levies against all those who tariff US goods, has taken a fresh turn. It has evolved into a slugfest between China and the United States, with Washington now imposing a punishing 125 per cent tax on all Chinese goods. At the same time, tariffs on other nations have been put on hold.

In this context, China has extended conciliatory gestures toward India, urging collaboration to counter the US's "abuse of tariffs" and hegemonic practices.

Chinese Foreign Minister Wang Yi emphasised the importance of India and China working together, likening their partnership to making the "dragon and elephant dance." He argued that cooperation between the two largest developing economies is essential to uphold the rights of the Global South and oppose power politics.

Beijing has also expressed willingness to strengthen trade ties with India by importing more Indian goods and encouraging Indian enterprises to explore opportunities in China.

India, traditionally aligned with the US in trade, is now reassessing its economic strategies due to Trump's tariffs targeting Indian exports as well. While New Delhi has sought to reduce tensions with Washington by lowering tariffs on some American goods, it is also exploring avenues for deeper economic engagement with China.

In a recent post by Ms. Yu, a Chinese embassy official, she emphasized that such conflicts have no winners and urged countries to practice multilateralism and oppose unilateralism and protectionism. She also underscored China's significant contribution to global economic growth, accounting for around 30% annually, and reiterated China's commitment to safeguarding the multilateral trade system.

"China-India economic and trade relationship is based on mutual benefits. Facing the US' abuse of tariffs, which deprives countries, especially in the 'Global South', of their right to development, the largest developing countries (in the area) should stand together..." Yu Jing, the spokesperson for the Embassy in Delhi, said on X.

The statement coincides with President Xi Jinping's call for cooperation between China and India during a meeting with Indian President Droupadi Murmu on April 1. This appeal for collaboration comes amidst heightened U.S.-China trade tensions, with Trump imposing an additional 50% tariff on Chinese goods, bringing the total tariff rate to 104%. These measures have further strained relations between the two economic giants, prompting warnings from allies about potential global repercussions.

India has not officially responded to China's statement yet. However, External Affairs Minister S. Jaishankar has noted that Indo-China relations are moving in a positive direction, reflecting recent diplomatic efforts to ease tensions following years of strained ties due to border disputes and trade imbalances.

India's tariffs pain are not, at this time, quite as severe as they are for China.

Trump has acknowledged, repeatedly, that Delhi is a "very big abuser of tariffs", but it appears a friendlier relationship with Prime Minister Narendra Modi is keeping back the high import duties.

The US President announced "discounted" tariffs for India - 'only' 26 per cent, which will be added to the baseline 10 per cent announced for certain goods, such as steel.

There is also the possibility Trump will throw in additional taxes on import of pharmaceutical goods.

India exported goods worth $89.91 billion to the US in 2024, but this year sectors like seafood and vehicles and auto parts, on which a separate 25 per cent was announced, will take a hit.

This evolving dynamic highlights how Trump's tariff policies are reshaping global alliances, compelling India and China to find common ground in response to shared economic challenges.

Agencies