China Faces 125% Tariff by USA: A Strategic Opportunity for India

China has become the highest tariffed nation in the world by USA which is closely 125%. First it was 10 % then it went up to 36% then a retaliatory tariff by China and it went all the way up to 125% . The size of export to USA by China is roughly 124 billion dollars and the current account is 1632 billion dollars and the balance of trade is 170.52 billion dollars.

Such a huge gap or trade deficit was never would have been tolerated by a person like Trump especially when you have collected vote in the name of Tariffs. Persistent Watchers will agree with me that There was never a single election rally went without the mentioning of Tariff in USA.

China has a huge inventory in the USA and several lot of batches of products that were to be exported to USA. Now because of this huge tariff they would find it difficult to sell in the USA. They have only one option left to sell those products and that is India.

The important and a very pertinent juncture the world has step into is that the very China which has been funding Pakistan since a while. China is harming India whether by providing weapons e.g. 5.5 generations stealth fighter jets and other armaments. Recently Bangladesh’s Yunus gave a staggering statement from Beijing about 7 sisters.

Now the ball is in India’s court. China has started to try to sell their inventory in India, they will beg to sell it even they already have offered 5% discount on their current stock. China knows, only the India has such a huge population to gulp their astronomical inventory, if India rejects then an economic slowdown is obvious to come in China.

India has two options

One – They can buy from China and open the market of India for Chinese goods and by repackaging the products they can sell to USA. Which will be much profittable but this advantage comes with a risk which is Chinese products will flurried everywhere in India. Obviously that would jeopardise our small and medium industries but with a stronger grip over selective products we can turn this crisis into an oppertunity.

Two – India can compel China to come into its own covenants that China will stop to sell their weapons in Pakistan and stop giving place to Bangladesh’s current regime.

Conclusion: A Crisis Turned Opportunity

The world stands at a critical juncture. China’s economic vulnerability, brought on by the 125% US tariffs, presents a rare and powerful opportunity for India—both economically and diplomatically.

With calculated diplomacy and strategic trade policies, India can emerge as the biggest winner in this unfolding global trade realignment.