India quietly resetting trade strategy, China could step in: Ex-diplomat on US tariff shock

India is taking steps to diversify its global alliances, which can be seen as a significant departure from the heavy reliance on the US, said Bhadrakumar.

Updated on: Sep 11, 2025, 12:55:08 IST

By HT News Desk

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As trade tensions simmer between New Delhi and Washington over tariff negotiations, a former Indian diplomat suggested that India seems to be quietly recalibrating its economic strategy and China may soon play a larger role in it.

According to Bhadrakumar, the most surprising development is India's quiet overture toward opening up economic ties with China. (AFP)

Speaking on the ongoing tariff standoff with the US, former ambassador and foreign policy analyst MK Bhadrakumar said that the punitive steps imposed by US President Donald Trump are unlikely to be lifted anytime soon.

According to him, the issue stems from a contradiction in Trump's strategic approach to Russia, which led to major complications in the US-India dynamic.

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"The tariff wall and the virtual sanctions against India will remain in place for some time, until this contradiction is resolved in the American, in Trump's strategy vis-à-vis Russia," Bhadrakumar said.

However, in response, India is taking steps to diversify its global alliances, which can be seen as a significant departure from the heavy reliance on the US seen in recent years.

"India has seriously begun diversifying its trade and economic relations. It is no longer thinking of putting so many eggs in the American basket as it used to," he added.

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China may enter the equation

According to Bhadrakumar, perhaps the most surprising development is India's quiet overture toward opening up economic ties with China.

"Most importantly, India is opening up a line to China. China may enter the Indian market in a big way, which will generate employment, and that will completely change the relationship," he said.

Bhadrakumar also emphasised that India is not the same player the US once dealt with. Its strategic autonomy and confidence have grown.

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As of August 2025, the United States raised tariffs up to 50 per cent on various Indian exports. This includes a base reciprocal tariff in addition to a punitive 25% increase tied to India's continued purchases of Russian oil.

After Trump imposed tariffs, PM Modi met with Chinese President Xi Jinping on the sidelines of the Shanghai Cooperation Organisation (SCO) summit, and the two leaders pledged to strengthen bilateral cooperation by basing their relationship on mutual trust, respect, and sensitivity

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HT News Desk
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