Amid the ongoing tariff war triggered by US President Donald Trump, India and China are in talks to resume border trade in locally manufactured goods, ending a hiatus of over five years.

India and China are holding discussions to restart border trade in locally manufactured goods, more than five years after it was suspended. The move, reported by Bloomberg News, comes as both nations face mounting economic pressures from escalating U.S. tariffs under President Donald Trump’s trade policies.

As per reports, the talks aim to revive commerce disrupted amid diplomatic tensions and border frictions. The discussions are expected to cover critical supplies, including rare-earth magnets, fertilizers, and pharmaceuticals, which are vital for Indian industries affected by global trade disruptions.

Indian Foreign Minister S. Jaishankar has stressed that resolving border disputes and keeping trade channels open are essential for rebuilding mutual trust with Beijing. The renewed engagement follows signs of a thaw in relations — including the resumption of direct flights and planned high-level Chinese visits to New Delhi.

If successful, the agreement would mark a significant step toward stabilizing ties and ensuring crucial supply chain flows between the two Asian giants.

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