How the US-China Trade War Could Boost Opportunities for Indian Exporters: Insights from Industry Experts

New Delhi: The ongoing trade war between the US and China could open new doors for Indian exporters. Experts suggest that as the US imposes higher tariffs on Chinese goods, Indian products may gain more traction in the American market.

S.C. Ralhan, President of the Federation of Indian Export Organisations, believes that India could benefit significantly. In 2024-25, India exported $86 billion worth of goods to the US. The US is set to raise tariffs on Chinese imports by 100% starting November 1, 2025. This move will hike the overall tariff rate on Chinese goods to about 130%.

This decision follows China’s recent ban on rare earth exports, crucial for American industries like defense and electric vehicles. With the US already charging a 50% tariff on Indian goods compared to 30% on Chinese imports, these new tariffs could give India a competitive edge.

Textile experts are particularly optimistic. One exporter noted that high tariffs would create a more level playing field, attracting more buyers from the US. Retailers like Target are already reaching out for new products, signaling growing interest.

According to the Global Trade Research Institute (GTRI), the escalating trade tensions could impact prices of electric vehicles, wind turbines, and semiconductor parts in global markets. Currently, the US relies on China for various goods, including electronics and textiles.

In 2024-25, the US remained India’s largest trading partner, with bilateral trade at $131.84 billion. The US constitutes about 18% of India’s total goods exports and is a vital part of its trade relationships. Currently, both countries are discussing a potential bilateral trade agreement that could further strengthen these ties.

In conclusion, the evolving trade landscape presents Indian exporters with unique opportunities to expand their presence in the US market—a change that could reshape global trade dynamics.

For more insights, you can visit the Federation of Indian Export Organisations for the latest updates.

Source link

INDIAN EXPORTS, US TARIFFS ON CHINA, US TARIFFS ON INDIAN GOODS, AMERICAN MARKET, US CHINA TRADE, INDIAN EXPORTERS LIKELY TO GAIN FROM US CHINA TRADE WAR ESCALATION SAYS EXPERTS