India-China Trade / India-China trade has increased so much, is that why Trump is waging a 'tariff war'?

India-China Trade: India and China are two major economic powers of the world, whose population is also a large part of the global population. In such a situation, the increase in trade relations between the two countries can have a big impact on the global economy. Recently, a United Nations report has revealed that trade between India and China has increased significantly. This growing trade has increased the concern of America, and in view of this, the question arises whether America's tariff war is due to this?

How much increase in India-China trade?

According to the Global Trade Update Report of the United Nations Trade and Development (UNCTAD), global trade in 2024 reached $ 33,000 billion, an increase of $ 1,200 billion i.e. 9 percent. The report also mentions that developing countries like India and China have recorded better than average trade growth, while developed countries witnessed a contraction in trade.

Trade between India and China remained strong especially in the fourth quarter of 2024 (October-December). India's exports of goods grew by 7 per cent during this period, while the annual growth was 2 per cent as of 2023. In contrast, South Korea's exports witnessed a slowdown, yet it remained the highest among the world's top economies.

America and tariff war

The US import rate remained positive in the fourth quarter of 2024, while exports declined. Imports declined on both quarterly and annual basis in Japan, Russia, South Africa and the European Union. There was a change of power in the US in January 2025, and Donald Trump started a tariff war to increase economic pressure on China as soon as he became president. His aim is to promote manufacturing in America and create employment opportunities, which he is pursuing under the 'Make in America' campaign.

America's concern justified?

The UN report justifies America's concern, as its declining exports are becoming a big problem for it. Trump's starting a tariff war can be considered part of a strategy to stop this decline and control powers like China.

Conclusion

The growing trade between India and China is affecting the global economy and forcing countries like the US to change their economic policies. In the coming years, it will be interesting to see how India and China's trade strategies affect US policies and bring about changes in the global economic balance.