‘India Won’t Be a Bystander in US-China Trade War’: Jaishankar Warns of Global Chaos

New Delhi: External Affairs Minister S. Jaishankar on Thursday sounded an alarm over the escalating trade tensions between the United States and China, cautioning that the world is barreling toward deep turmoil and economic upheaval. He stressed that India must be prepared to safeguard its interests amid this increasingly volatile global environment.

Speaking at the Carnegie India Global Technology Summit in the capital, Jaishankar highlighted the far-reaching implications of the tit-for-tat tariff war between the world’s two largest economies. “Nothing is only trade anymore. Nothing is purely business anymore. Everything is also personal,” the minister remarked, underlining the geopolitical dimensions of global commerce.

His comments came in the wake of U.S. President Donald Trump easing tariffs on some trading partners, including India, while simultaneously imposing harsher duties on Chinese imports. The move drew a sharp rebuke from Beijing, which retaliated with its own tariffs and vowed to “fight to the end.” Global markets have since witnessed heightened volatility as fears of a prolonged trade war resurface.

Reflecting on India’s historical position amid US-China rivalry, Jaishankar stated, “We’ve actually seen both extremes. For the first few decades after independence, there was very sharp contestation between the US and China, and we got caught in the middle of it. And then, even worse, a deep collaboration between the US and China — and being at the wrong end of it.”

Calling it a “Goldilocks problem,” he noted that neither extreme has ever worked in India’s favor.

In a rapidly shifting global order, Jaishankar stressed the need to reassess what India considers strategically important. “In the past, we could insulate sectors, saying this doesn’t matter; this is only trade. But now, our definition of what is sensitive has expanded,” he said.

On India’s ongoing trade negotiations with the U.S., Jaishankar revealed that there is a conceptual agreement to finalize a bilateral trade deal — an effort initiated shortly after Trump returned to the White House in January. However, the talks have recently faced delays due to hesitation on the American side.

“We are certainly geared up for a very high degree of urgency. We see a window here and want to seize it. Our trade teams are really charged up,” he added, noting that India is now driving the process after traditionally being seen as the side slowing negotiations.

Prime Minister Narendra Modi and President Trump, during their February meeting in Washington, had committed to concluding the first phase of the trade agreement by the fall. Last month, a U.S. delegation led by Assistant Trade Representative Brendan Lynch visited Delhi to advance the discussions.

As the global power tussle intensifies, India is positioning itself to shield its economy while actively engaging with allies to secure its strategic and economic future.