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🇮🇳 Modi Holds Ground, China Fires Back: Trump’s Tariff War Sparks Global Heat

Posted on August 7, 2025

New Delhi | August 2025 —
As US President Donald Trump intensifies his tariff war by imposing a staggering 50% duty on Indian goods, global reactions have begun pouring in. But among the loudest came from an unexpected source — China.

Contents hide
1 China Breaks Silence: “Give the Bully an Inch…”
2 Modi’s Bold Response: “India Is Ready”
3 India and China: Rivals, Yet Aligned on This
4 Economic Fallout: India’s GDP in Crosshairs
5 India’s Stand: Firm, Nationalistic, Unbending
6 The Bigger Picture: Is Global Trade at Risk?
7 Conclusion

China Breaks Silence: “Give the Bully an Inch…”

Chinese Ambassador to India Xu Feihong minced no words in criticizing Trump’s latest move. In a sharply worded post on social media platform X (formerly Twitter), he wrote:

“Give the bully an inch, he will take a mile.”

Without directly naming Donald Trump, the statement sent a clear message to Washington. The post was accompanied by a snippet of a phone conversation between Chinese Foreign Minister Wang Yi and Brazil’s top foreign policy advisor, where Yi stated that the use of tariffs to suppress other countries violates the UN Charter and undermines the World Trade Organization (WTO).


Modi’s Bold Response: “India Is Ready”

In New Delhi, Prime Minister Narendra Modi delivered a strong message at the MS Swaminathan Centenary International Conference, saying:

“India will never compromise on the interests of our farmers, fishermen, and dairy workers… I know we will have to pay a heavy price for it, and I am ready for it. India is ready for it.”

The remarks came just a day after Trump announced an additional 25% levy — on top of a previous 25% — over India’s continued oil trade with Russia.


India and China: Rivals, Yet Aligned on This

While India and China remain fierce strategic competitors across South Asia, their reaction to Trump’s aggressive trade policy shows a rare moment of indirect alignment. Both nations are facing different forms of US pressure, and both are defending their national interests strongly.

Interestingly, reports suggest that PM Modi may travel to China in late August 2025, marking his first visit since 2018. While not officially confirmed, such a visit could be a game-changer for India-China relations — and global diplomacy.


Economic Fallout: India’s GDP in Crosshairs

According to Bloomberg Economics, these new tariffs could reduce India’s exports to the US by up to 60% and shave off 1% of GDP in the near term. Some analysts predict a deeper blow — 1.1% decline in GDP — if the US expands tariffs to critical sectors like pharmaceuticals and electronics.

The Reserve Bank of India (RBI) still expects a 6.5% growth rate for fiscal 2026, but it’s well below the pre-pandemic average of 8%.


India’s Stand: Firm, Nationalistic, Unbending

The Ministry of External Affairs (MEA) also responded swiftly, calling the US tariffs:

“Unfair, unjustified, and unreasonable.”

India made it clear that its oil imports are based on market factors and aimed at ensuring energy security for 1.4 billion citizens. The government has stated it will take all necessary actions to protect its national interest.


The Bigger Picture: Is Global Trade at Risk?

With three major powers — the US, India, and China — now clashing over trade policies and strategic independence, the global economy may be heading toward turbulent times.

Trump’s unilateral moves are drawing criticism not just from rivals, but from allies and neutrals alike. As India braces for economic headwinds, it is also solidifying its image as a sovereign nation unwilling to bend under external pressure.


Conclusion

This isn’t just a trade issue — it’s a test of global power dynamics. With PM Modi standing tall, China entering the narrative, and Trump doubling down, the world is watching what could become a defining chapter in India’s foreign policy and economic resilience.

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