China is easing up on urea export limits to India because of Trump’s tariff threats. This is a sign that things are changing in the world.
NEW DELHI, India – August 13, 2025:China is making a big move in how it deals with other countries and the economy. It’s relaxing the rules on sending urea to India, and many people think this is because of growing trade problems with the United States. Sources say that this change in plans will let China send up to 300,000 tons of urea to India. This happens as both China and India worry about new tariffs from President Donald Trump’s government. This gives them a good reason to work together on money matters.
Why India Needs Urea So Much
India buys more urea than any other country. It’s a fertilizer with nitrogen that’s very important for India’s huge farming business. India doesn’t make enough urea itself, so it has to buy it from other countries to make sure there’s enough food and good harvests. The Indian government helps farmers by paying part of the cost of the fertilizer.
In the year that ended on March 31, India bought almost 20% less urea from other countries. The amount it bought from China dropped a lot, from 1.87 million tons to only 100,000 tons. This big drop happened because China had strict rules about sending urea to other countries, wanting to make sure it had enough for itself. The new plan to send some urea is a big help for India’s farming supplies, even though it’s not a huge amount at first.
Trump’s Tariff Threat Acts Like a Push
It’s not an accident that China is changing its plans now. The Trump government recently raised tariffs on Indian goods to 50%, which is said to be because India keeps buying oil from Russia. This has put a lot of money pressure on India and its industries that sell things to other countries.
At the same time, the Trump government has been having a complicated trade situation with China, sometimes agreeing and sometimes disagreeing. This puts both India and China in a tough spot, as they might face a big money fight with the United States. Because they’re both feeling the pressure, they seem to have a chance to get along better and work together on money issues.
Signs That Things Are Getting Better
Loosening the rules on sending urea isn’t the only thing happening. It’s part of a small improvement in the relationship between China and India. They’ve had problems for years, especially after the violent clashes at the border in the Galwan Valley in 2020. But recently, they’ve made some moves to calm things down.
India recently started giving tourist visas to Chinese people again after stopping them for a long time. There’s also a good chance that Prime Minister Narendra Modi and Chinese President Xi Jinping will meet at a meeting in Tianjin, starting on August 31. These friendly steps, along with the new trade plan, show that both countries want to reduce tension and stand together against money problems from other countries.
How This Affects the World Market
China’s choice to start selling urea to India again could really change fertilizer prices and supplies around the world. China makes a lot of urea, and when it stopped sending as much to other countries, it made supplies tight and prices high. The new plan could help make supplies more available and maybe lower prices.
For India, this is good news. It can buy from China instead of only relying on other countries, which is important for its plans. The first amount of 300,000 tons is small, but experts think it could lead to more trade between the two countries in the future.
The Complexities of Trade
Even with these new steps, the trade relationship between India and China is still complex and not balanced. India buys a lot more from China than it sells, with a difference of $102.78 billion in 2024. India mainly sells raw materials and farm products, while it buys expensive manufactured goods and important parts from China.
India has also been careful about letting China invest in its businesses, making the rules stricter and banning many Chinese apps after the border clashes in 2020. Right now, both countries seem to be taking a sensible approach, focusing on keeping their economies steady and protecting their interests when faced with a common challenge from the outside. How the relationship goes in the future will depend on whether they can settle their border issues and fix the trade imbalances.
