America imposed 125% tariff, troubled beijing sought help?
Trade tensions between india and America are constantly increasing. Enraged by the 84 percent tariff imposed by china in retaliation, America has now increased the tariff on china from 104 percent to 124 percent. trump has argued behind doing this that when he imposed tariffs, other countries came forward to negotiate with him, while china did not do so. china retaliated in return for the tariff, which is not respect in a way.
china said - india should come together
On the other hand, amid the increased trade tension with America, beijing sought help from its neighbor india and said that we should stand together. Spokesperson of the Chinese Embassy in india, Yu Jing, issued a statement on tuesday saying that the economic and trade relationship between beijing and New delhi is based on mutual benefit. He further said on social media post that both the developing countries should come together to face the challenges of American tariffs and overcome this difficult time. There is no winner in trade and tariff war. All countries should follow the principles of deep consultation and all kinds of unilateral and protectionist steps should be opposed.
What options does india have?
In fact, companies like tesla and apple will be affected in the fight between the two countries because the Chinese market will become very expensive for them. On the other hand, china can now give priority to its domestic brands in european countries or other places instead of America.
Due to all these reasons, America's competition will weaken and it will be a big opportunity for india when American companies will turn to india instead of China.
What will be the benefits?
If American companies turn to india, then it will increase foreign investment. The indian economy will be strengthened. However, there are many electronic products for which india is dependent on China. In that situation, indian consumers will have to pay more for those goods. Another factor that can be seen is that indian exporters may have to face instability in global trade. This may lead to a decrease in exports.
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