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The Age
5 hours ago
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Trump's tariff strike on India plays into China's hands
Singapore: When Indian Prime Minister Narendra Modi travels to Shanghai later this month, as leaked reports suggest he will, it will mark the first time in seven years he has met Chinese President Xi Jinping on his home turf. It will also send an unmistakable signal of the growing détente between Asia's two heavyweight nuclear powers after a period of escalating tensions and border conflict. If US President Donald Trump makes good on Wednesday's vow to double tariffs on Indian exports into America, Modi would arrive in China for the Shanghai Co-operation Organisation on August 31 with his relationship with Beijing's chief rival under newfound strain. At 50 per cent, the tariff would be among the highest the Trump administration has imposed on its trading partners. Half of that figure is in retaliation for India's purchases of Russian oil. Notably, China, the world's largest buyer of Russia's fossil fuels, has so far escaped a similarly punitive measure. Tightening the screws on Russia by strangling its wartime economy has been a key tool of the United States and its allies to try to force Vladimir Putin to abandon his ambitions to annex Ukraine. But Trump's surprise decision to single out India for punishment – and his confrontational approach to trade negotiations, including disparaging India's economy as 'dead' – is a high-risk gamble that undermines years of US-led efforts to build trust with India. Loading On the world stage, India plays a careful hand, wary of being pulled too closely into either China's or America's orbit. It is a member of both the Chinese-dominated BRICS forum, which was set up as an alternative to US-led institutions, and the Quad security dialogue with the United States, Australia, and Japan. For more than two decades, the US has courted India as a strategic ally, efforts that have escalated in recent years as America and its allies have increasingly seen India as a counterweight to China's growing assertiveness in the region. 'China would be pleased to see this going on,' says Dr Lavina Lee, director of foreign policy and defence at the United States Studies Centre in Sydney.
