Archive · 18 Sep 2025
China Becomes India's Top Trade Partner as US Trade Declines
Imagine India is like a store.
The US was the biggest customer, but now China is buying the most.
This happened because the US put extra taxes on things India sells.
These taxes made India sell less to the US, and the US also sold less to India.
Meanwhile, China started buying more from India.
So, even though trade with the US slowed down, trade with China grew, making China India's biggest trade partner.
US exports to India fell 16.3% in August due to tariffs.
US imports from India dropped by 20% in August.
China became India's largest trade partner.
India's exports to the US have been declining since May.
Tariffs, including reciprocal and penalty tariffs, impacted trade.
- Who
- India, US, China
- What
- Trade shifts due to tariffs
- When
- August
- Where
- India, US, China
- Why
- Due to the implementation of reciprocal and penalty tariffs
Effects of Tariffs
Trade Relationships
Impact
Effects of Tariffs
US exports to India declined.
Trade Relationships
China saw increased trade with India.
- Largest Trade Partner
- China
- US Exports Decline
- 16.3% in August
- US Imports Decline
- 20% in August
- China's Imports to India
- Increased by 0.67% YOY
- China's Exports to India
- Increased by 22.38% YOY
- US Tariff Hikes
- 10% to 25% then 50%
Sources
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