'Economic war against India comes at time...': Analyst flags China threat before fresh Trump tariffs kick in
The tariff increase, set to take effect this Wednesday, will double the existing duties on Indian imports, adding pressure on exporters already burdened by a 25 per cent levy.
- Aug 25, 2025,
- Updated Aug 25, 2025 2:15 PM IST
Geostrategist and strategic affairs analyst Brahma Chellaney on Monday said that the fresh US tariffs on India come at a time when China is on its most rapid and ambitious expansionist spree.
The tariff increase, set to take effect this Wednesday, will double the existing duties on Indian imports, adding pressure on exporters already burdened by a 25 per cent levy.
"The Trump administration’s disruptive approach to Indo-Pacific partnerships — including launching what amounts to an economic war against strategic partner India — has introduced dangerous unpredictability into Asian security calculations, at a time when China has embarked on the most rapid and ambitious peacetime military expansion in human history," Chellaney wrote on X.
While Chellaney flagged the China threat, former Foreign Secretary of India Kanwal Sibal said that Trump's confrontationist foreign policy approach will only strengthen India's rationale for preserving its strategic autonomy.
He added that tariffs and access to the US market are undoubtedly weapons against India, but their impact will recede over time. He further stated: "The earlier unilateral phase of US foreign policy ended in a disaster. Trump’s new unilateralism will not succeed either."
Meanwhile, the Prime Minister's Office has scheduled a high-level meeting for August 26 to review potential relief measures for Indian exporters facing a 50 per cent tariff hike on goods exported to the US. The government's response strategy is expected to be finalised during the meeting, offering a clearer picture of the support mechanisms for those affected by the tariff changes.
Officials are considering targeted support for specific sectors to mitigate the impact of increased tariffs on exports to the United States. Rather than a broad economy-wide loan guarantee, the government intends to focus on sector-specific interventions, deemed more effective.
The government is prioritising support for export-oriented units and small and medium enterprises (SMEs), which are particularly vulnerable to external economic shocks. An official told Business Today TV, "Micro firms have shared that sector-specific credit lines with collateral support are helpful."
Cluster-based working capital funds are also under consideration to aid these businesses by enhancing liquidity.
Geostrategist and strategic affairs analyst Brahma Chellaney on Monday said that the fresh US tariffs on India come at a time when China is on its most rapid and ambitious expansionist spree.
The tariff increase, set to take effect this Wednesday, will double the existing duties on Indian imports, adding pressure on exporters already burdened by a 25 per cent levy.
"The Trump administration’s disruptive approach to Indo-Pacific partnerships — including launching what amounts to an economic war against strategic partner India — has introduced dangerous unpredictability into Asian security calculations, at a time when China has embarked on the most rapid and ambitious peacetime military expansion in human history," Chellaney wrote on X.
While Chellaney flagged the China threat, former Foreign Secretary of India Kanwal Sibal said that Trump's confrontationist foreign policy approach will only strengthen India's rationale for preserving its strategic autonomy.
He added that tariffs and access to the US market are undoubtedly weapons against India, but their impact will recede over time. He further stated: "The earlier unilateral phase of US foreign policy ended in a disaster. Trump’s new unilateralism will not succeed either."
Meanwhile, the Prime Minister's Office has scheduled a high-level meeting for August 26 to review potential relief measures for Indian exporters facing a 50 per cent tariff hike on goods exported to the US. The government's response strategy is expected to be finalised during the meeting, offering a clearer picture of the support mechanisms for those affected by the tariff changes.
Officials are considering targeted support for specific sectors to mitigate the impact of increased tariffs on exports to the United States. Rather than a broad economy-wide loan guarantee, the government intends to focus on sector-specific interventions, deemed more effective.
The government is prioritising support for export-oriented units and small and medium enterprises (SMEs), which are particularly vulnerable to external economic shocks. An official told Business Today TV, "Micro firms have shared that sector-specific credit lines with collateral support are helpful."
Cluster-based working capital funds are also under consideration to aid these businesses by enhancing liquidity.