‘Nothing is trade anymore, everything is personal’: Jaishankar amid US-China tariff war

External Affairs Minister S Jaishankar, speaking at the backdrop of an escalating trade and tariff war, said that nothing is only about trade and business anymore. He said everything is personal in the current scenario. 

Speaking at the Carnegie India Global Technology Summit, Jaishankar said that India’s experiences, in the context of US-China relations, have been very different from other nations. “For the first few decades after Independence, there was very sharp contestation between the US and China, and we got caught in the middle of it. And then, even worse, a deep collaboration between the US and China and being at the wrong end of it. So, you know, neither situation (worked) for us,” he said.

Jaishankar said, “It's kind of like a Goldilocks problem. You want ideally an optimal situation but they are not going to oblige the rest of the world. We are clearly heading for a period of sharp competition and contestation. Different countries need to plan for it. That planning is going to be much harder because, in the past, we could insulate sectors, saying, you know, this doesn't matter, this is only trade, it's not political, it's not defence, it's not sensitive. I think our definition of what is sensitive has expanded. Nothing is only trade anymore. Nothing is purely business anymore. Everything is also personal.”

The minister said that while it is really difficult to navigate the current geopolitical landscape, it is important to navigate it. He said this is going to be the predicament of the world – to take on a “more difficult journey and many more obstacles in a much more challenging topography”. 

Jaishankar’s comments come after the US announced its plans to pause the tariffs for a 90-day period, during which a lowered reciprocal tariff of 10 per cent would be implemented. Meanwhile, he hiked the tariffs, with no pause in sight for China, at 145 per cent.

The hike on tariffs for Chinese goods came after China announced tariffs of 84 per cent on American goods. It further put restrictions on certain sectors and US entities as well. 

The US had imposed 26 per cent tariffs on India, which is currently on a pause. The two countries are looking to sign off the bilateral trade agreement this year.