Donald Trump‘s tariffs are doing, it appears, what decades of political and diplomatic wrangling could not, at least with any great degree of success – to get India and China to work together, to “make the dragon and elephant dance“, as Chinese Foreign Minister Wang Yi said last month.

The US President’s tariffs on China – now at a jaw-dropping 104 per cent after Beijing responded to the first round with a 34 per cent levy – have led to a second full-blown trade war between the two global giants, with the Chinese vowing to fight “American aggression… to the end”.

Trump’s tariffs, and the resulting ‘game of chicken’ with China’s Xi Jinping, also appear to have led Beijing to make several conciliatory statements about New Delhi; the latest was Tuesday, when the Chinese Embassy called on India and China to “stand together to overcome difficulties”.

“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.

China’s economy is underpinned by a system that ensures steady growth, and produces positive spillovers. Chinese manufacturing is built on a complete and continually upgrading industrial system, sustained investment in R&D, and a strong focus on innovation.

China is a firm… pic.twitter.com/w3QuSCingL

— Yu Jing (@ChinaSpox_India) April 8, 2025

The long post also seemed to contain a warning for Trump, telling the US President, “… trade and tariff wars have no winners. All countries should uphold the principle of extensive consultation, practice true multilateralism, (and) jointly oppose all forms of unilateralism and protectionism”.

The embassy also underlined its position of strength vis-a-vis the global economy, pointing out China contributes to around 30 percent of annual global growth, on average. “We will continue to work with the rest of the world to safeguard the multilateral trade system…” Ms Yu’s post said.

India has not yet responded to this statement.

Ms Yu’s post followed a statement by President Jinping himself; on April 1, the Chinese leader told President Droupadi Murmu in Beijing that India and China should work together.

That calls for cooperation have come down from the highest level in Beijing is significant, even if it is apparent they were prompted by the flood of tariffs unleashed by the United States.

READ | Trump Raises Tariffs On China To 104%, Effective Now: White House

On Wednesday Trump made good on his threat of “additional 50 per cent tariffs”. The White House confirmed that would take Washington, D.C.’s tariff total on Beijing to a staggering 104 per cent.

Trump’s Tariffs On India

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.

READ | Donald Trump Announces 26% “Discounted Reciprocal Tariff” On India

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.

NDTV Explains | Trump’s 25% Auto Tariffs. What Are They, Who Is Affected?

But, unlike China, India has said it will not ‘retaliate’ and impose tariffs of its own, even if analysts expect a significant hit to exports to the US, by as much as $5.76 billion, this year.

READ | India To Avoid Retaliation On US Tariffs, Will Instead Focus On…

A government official told Reuters Delhi will focus on a clause that offers a possible reprieve for trading partners who “take significant steps to remedy non-reciprocal trade arrangements”.

Delhi, sources have said, is also open to cutting its existing tariffs in certain cases.

India-China Ties After Galwan

Relations between China and India have been tenuous, at best, and downright hostile more often than not, particularly after violence in Ladakh’s Galwan Valley in June 2020 prompted a worrying build-up of military forces along the border. It wasn’t till October last year that a patrolling deal was negotiated.

NDTV Explains | India-China Border Patrol Deal: What It Means, Why It’s Important

The agreement seemed to trigger a thaw in India-China ties – underscored by a meeting between Prime Minister Narendra Modi and Mr Jinping days after it was announced – that seems to have carried over to the economic front, even if helped by the avalanche of tariffs levied by Trump.

Last month China’s Foreign Minister called on New Delhi and Beijing to work together and “take the lead in opposing hegemonism and power politics”. He also said, “Supporting, instead of wearing each other down, and strengthening cooperation… is in our fundamental interests.”

He also emphasised the meeting between Mr Modi and Mr Jinping, and stressed, “We should never allow bilateral relations to be defined by the boundary question…”

With input from agencies

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India will buy 26 Rafale M fighter jets – i.e., the marine variants – for the Navy in a record government-to-government deal worth over Rs 63,000 crore, sources told NDTV Tuesday.

These will be the first major fighter jet upgrade for the country’s naval forces.

The deal will also include a comprehensive package for fleet maintenance, logistical support, personnel training, and indigenous manufacturing of components under offset obligations.

It will likely be signed later this month, when French Defence Minister Sébastien Lecornu visits India. Deliveries are expected five years after the papers are signed, sources said.

The jets – 22 single-seater and four twin-seater variants – will be deployed primarily on board indigenously-built aircraft carrier INS Vikrant, as India looks to strengthen maritime strike capabilities, given the need to keep a watch on Chinese activities in the Indian Ocean region.

“We are tweaking our strategy to “negate” any infringement in its area of operations and is “ready to tackle threats from all neighbours”, Navy Chief Admiral Dinesh Tripathi said in December.

The Navy’s new Rafales will complement the existing fleet of MiG-29Ks.

The Air Force already operates 36 Rafale jets out of two bases in northern India.

US President Donald Trump mocked tariff-hit nations on Tuesday (local time), stating that they were ready to don anything while trying to negotiate with him.

While speaking at the National Republican Congressional Committee, Trump said he was a better negotiator than Congress.

He said, “I’m telling you- these countries are calling us up, kissing my a**. They are dying to make a deal- ‘please sir make a deal, I’ll do anything, I’ll do anything sir'”.

He added that although some ‘rebel’ Republicans argue that he must allow Congress to make a deal, he believed that if that were the case, China wouldn’t have been slapped with 104 per cent tariffs, and vice versa.

“I’ll see some rebel Republicans that want to grandstand say, ‘I think that Congress should take over negotiations.’ Let me tell you, you don’t negotiate like I negotiate,” he said.

He added that Congress’s negotiations would sell America.

“Congress takes over negotiating to sell America fast because you’re going to go busted. I just saw it today. A couple of your congressmen said, ‘I think we should get involved in the negotiation of the tariffs, ‘” he mocked.

Trump said that Congress’s negotiations would make China the happiest, as China would not have to pay any tariffs; the US would pay them instead!

“Oh, that’s what I need- I need some guy telling me how to negotiate. I tell you, the happiest people in the world would be Chinese. They wouldn’t be paying 104 per cent. I tell, they’d be paying no per cent [instead] we’d be paying them 104 per cent,” he said.

Trump also said that he would announce major tariffs on the pharma sector soon.

“Tariffs on pharma will be there because we don’t make our own pharma drugs; they are made in another country. The same packet in the US is priced at USD 10 or more. We are going to tariff pharma in such a way that companies will come rushing to us very soon. The advantage we have is, we are very big market. Very shortly, will announce a major tariff on pharma, and when these companies hear that, they will leave China and other countries because most of their products are sold here. And, they will be opening their plants here,” Trump said.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)