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Trump's tariffs on India: The 21-day deadline to impose a 25% additional tariff on Indian exports to the US ends on Wednesday. In a draft notice published on Monday, August 25, the US administration detailed its plan to impose a 50% tariff on Indian products as the August 27 deadline approaches, signalling its intent to move forward with the levies as the Russia-Ukraine war continues. The Department of Homeland Security has already issued notice saying the increased levies would hit Indian products “that are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 AM eastern daylight time on August 27, 2025.”

One may wonder here if Trump's tariffs hit India only, or if they may backfire. According to experts, Donald Trump's action on India to punish Russia is like an 'action without vision.' They said that a 50% tariff on Indian exports to the US would hit the health industry very severely, as India is one of the biggest generic drug suppliers to the US. In the case of higher tariffs, India has shifted its generic drug supply to Australia, leaving the US market at the mercy of Trump's 'MAGA'. The Indian government has increased its crude oil imports to challenge the petrodollar dominance in global trade. These steps are expected to pare the losses that the Indian economy would be incurring due to Trump's tariffs. However, one more development may irk the US administration — rising India-China bonhomie.

The foundation of the India-China relationship has been shaky for the last sixty years, since 1962. However, in the wake of Trump's tariffs and emerging trade war fears, the recent statement by the authorities from both sides has been affirmative, with a clear sign of rapprochement. They said that Donald Trump's tariff dictate has brought India-China-Russia closer, and it won't be a surprise if India joins China's Belt and Road Initiative (BRI), to give the US a Dutch therapy by penalising Pakistan, a medicine that Trump tried with Vladimir Putin by imposing tariffs on India. They said the Indian Prime Minister must integrate his ambitious Act East policy with China's BRI.

Why would Modi want to integrate the Act East policy with China's Belt and Road Initiative? Manish Bhandari, CIIA & Founder of Vallum Capital, said, "Today, India faces a strategic transport bottleneck that costs billions annually. The traditional Suez Canal route takes 45-60 days and covers 8,700 nautical miles to reach Russian and Central Asian markets. The China-Pakistan Economic Corridor (CPEC), though shorter at 3,000 km, remains blocked for India due to sovereignty concerns over Pakistan-occupied Kashmir. These limitations force India to rely on expensive, time-consuming routes that reduce competitiveness."

Bhandari said that India started its work on the International North-South Transport Corridor (INSTC), which emerges as India's game-changing alternative — a 7,200 km multimodal network that slashes transit time to 25-30 days and reduces costs by 30% compared to traditional routes. However, a friction remains on its way.

"Plugging in China’s Belt and Road Initiative (BRI) and India’s “Act East” policy can be aligned to create transnational corridors linking Chinese manufacturing hubs with Indian ports and markets. Participating in joint railroad and port projects reduces logistics costs for Chinese exports into South Asia and beyond. Collaboration on renewable-energy infrastructure (solar parks, wind farms) helps China export equipment while improving India’s energy mix and grid stability. Today, Russian oil now forms 36% of India's crude imports ($67.2B, up from