Limits of US tariff strategy on China holds cues for India

THE STEEP DECLINE in American equities after US President Donald Trump’s threat to impose 100 per cent tariffs, seems to have been followed by a familiar script — China standing firm against threats, signalling its willingness to bear the tariff heat, and Trump moderating his aggressive rhetoric.

- RAVI DUTTA MISHRA

In a sign that Trump may not make good on his threats of 100 per cent tariffs, he said on Sunday: “Don’t worry about China, it will all be fine! Highly respected President Xi just had abad moment. He doesn’t want depression for his country,and neither do I. The US wants to help China, not hurt it.”

In response to the tariff threats,the Chinese embassy in the US said: “China’s position on the trade war is consistent: we do not want it, but we are not afraid of it.” In one of its most direct responses so farto American tariffs, China said: “If the US insists on going the wrong way, China will surely take resolute measures to protect its legitimate rights andinterests.”

Trump’s climbdown may not guarantee the cessation of further flareups with China, butit could bea cue for India — with its large domestic economy — that standing up to Trump’s bullying may be the only way out of the current challenges with the US.