US Ambassador-designate to India Sergio Gor’s visit to India prior to taking formal charge coincided with President Donald Trump significantly ratcheting up the trade war with China by imposing an additional 100 per cent tariff. The US action came in response to China’s decision to restrict export of rare earths and processing technology. It marks a new low in ties and raises doubts about Trump’s likely meeting with Chinese leader Xi Jinping in South Korea later this month. Though the international situation, including in the immediate neighbourhood, remains challenging for India, the turn of events may offer room to manoeuvre despite Trump’s propensity to be swayed by transactional considerations.