US-China Trade Tensions: India Caught in the Crossfire

The US-China trade tensions, which have been ongoing for years, have left India in a precarious position, according to Professor Srikanth Kondapalli, a Chinese studies expert at Jawaharlal Nehru University (JNU). The imposition of tariffs on Indian goods by US President Donald Trump was likely due to "egoistic reasons," while the main issue has always been China challenging the United States' global position.

Key Takeaways:

• The main issue between the US and China is China's challenge to the US as a global hegemon, not the trade surpluses.
• The total trade deficit between the US and China is $6.9 trillion, while the total trade deficit between India and the US in the last 20 years is $270 billion.
• India is a marginal actor in the US-China trade tensions, with the US imposing a 100% tariff on branded and patented pharmaceutical products, unless the manufacturing companies are building production facilities in the United States.
• The Indian pharmaceutical sector supplies over 50% of global demand for various vaccines, 40% of generic demand in the US, and 25% of all medicines in the UK.
• India's annual drug and pharmaceutical exports reached a record $30 billion in FY25, with a 6.94% year-over-year surge in August 2025.

Statistics:

• Total trade deficit between the US and China: $6.9 trillion
• Total trade deficit between India and the US in the last 20 years: $270 billion
• Pharmaceutical sector's contribution to global demand: 50% for vaccines, 40% for generics in the US, and 25% for all medicines in the UK
• India's annual drug and pharmaceutical exports: $30 billion in FY25
• Year-over-year growth in pharmaceutical exports: 31% for March and 6.94% for August 2025

Sources:

• ANI: "US President Trump imposing tariffs on Indian goods due to 'egoistic reasons': JNU Professor"
• aninews.in: "US imposes 100% tariff on branded, patented pharma products from India starting October 1"