India Now Incurs Higher U.S. Tariffs Than China. What Does it Say About Trump’s Foreign Policy?
De-escalation in tensions between China and the U.S. after their leaders met in South Korea last Thursday stands in stark contrast to the chill in Washington-New Delhi relations, with India now subject to higher U.S. tariffs than Beijing.
Experts said that the strategic relationship between India and U.S. built over two decades has substantially eroded.
Atman Trivedi a partner and lead of the South Asia Practice at DGA-Albright Stonebridge Group said trust between the two countries “could take years rebuild.”
Steep tariffs, $100,000 fee for H1B visas, and U.S. President Donald Trump’s repeated claims of having brokered a ceasefire between India and Pakistan are among issues that have led to deterioration of ties between New Delhi and Washington in recent months, according to experts.
“President Trump evidently does not value India as a partner in balancing China as much as the previous presidents,” said Raymond Vickery Jr., senior associate and chair on India and emerging Asia Economics at Center for Strategic and International Studies.
The U.S. foreign policy from President Bill Clinton until recently, including Trump’s first term as the president, had consistently valued “democratic India over autocratic China,” he said, adding that the approach toward India has now shifted from one of strategic altruism to “transactionalism.”
Meanwhile, ties between the U.S. and China appear to be on the mend.
In a post on Truth Social on Saturday, Trump said “My G2 meeting President Xi of China was a great one for both of our countries” adding that it would lead to “everlasting peace and success.”
Shortly after, Pete Hegseth, U.S. secretary of defense, said on X that China and the U.S. had agreed to set up “miliary-to-military channels to deconflict and deescalate” any problems.
Trump and Chinese President Xi Jinping reached a trade truce in a high-stakes meeting in South Korea on Thursday which saw Washington cutting tariffs on Beijing related to fentanyl to 10% from 20%, reducing the overall rate on Chinese goods to around 47%.
China now pays a lower tariff than India.
In August the U.S. imposed 50% tariffs on India including secondary duties of 25% for its purchase of Russian oil. India has called the move “unfair, unjustified and unreasonable,” while has called U.S. trade ties with India “a totally one-sided disaster!”
Source : CNBC.com
