In the constantly shifting tectonics of global trade, few moments stand out as true inflection points. The recent decision by the United States to pause certain tariffs for 90 days while simultaneously escalating duties on Chinese imports to as high as 125%, is one such moment. While this pause reflects tactical recalibration, it also reveals a deeper strategic intent to realign trade priorities, challenge China’s dominance in supply chains, and embrace more reliable allies. For India, this presents not just a challenge but a once-in-a-generation opportunity one that the Modi government is uniquely equipped to leverage.
Global stage is shifting
The current US-China trade standoff has its roots in years of strained commercial ties, alleged intellectual property theft and geopolitical divergence. With Washington increasingly sceptical of Chinese intent and reliability, the Biden-Trump continuum has seen a consistent theme: tariffs, tariffs and more tariffs. But this time, the playbook is broader. It’s not just about penalizing China; it’s about de-risking global supply chains and embracing trustworthy allies. Treasury Secretary Scott Bessent’s recent remarks hint at this broader pivot: “We believe that fair tariff arrangements with trusted partners like India, Japan, South Korea and Vietnam are not only possible but essential.” This signals the clear strategic space India now occupies not merely as an alternative to China but as a preferred, permanent trade partner in the emerging global order.
Content retrieved from: https://www.firstpost.com/india/india-at-the-crossroads-seizing-opportunity-amid-us-china-trade-recalibration-13879182.html.
