Amid ongoing trade war between the United States and China, experts believe that it is likely to pave a way for Indian exporters in increasing their shipments to the American market, which in turn will benefit them.
The latest escalation in the conflict between the two largest economies was triggered by Beijing’s October 9 decision to tighten export controls on rare earth, which is a critical resource for US defense, electric vehicles, and clean-energy industries.
In response to this move, the US announced an additional 100 per cent tariff on Chinese goods, effective November 1, 2025, raising the total tariff rate on Chinese imports to about 130 per cent.
Federation of Indian Export Organisations President S C Ralhan said that imposition of steep US tariffs on Chinese goods will shift demand towards India. “We may gain from this escalation,” reported PTI quoting Ralhan.
While US tariffs on Indian goods are currently 50 per cent — already higher than China’s previous 30 per cent — the new 100 per cent additional tariff on Chinese products will give an “upper edge” to India which exported goods worth $86 billion to the US in 2024-25.
Exporters across various sectors are rooting for vast opportunities this scenario presents. A textile exporter highlighted that the higher customs duties on Chinese products will provide “huge export opportunities” for India.
This tariff hike will push up the prices of Chinese goods in the American market, making them less competitive and drawing buyers to alternatives, another exporter told the news agency.
Mirroring that thought, a toy exporter Manu Gupta said that high duties on Chinese goods will help attract buyers from both these nations. “It will help us. High duty will create a parity and will give us a level playing field,” Gupta said, adding American buyers like retail giant Target have reached out to them for new products.
Think tank GTRI warned that the escalating trade tensions between the US and China are likely to push up the global prices of Electric Vehicles (EVs), wind turbines, and semiconductor parts.
This is largely due to America’s heavy dependence on China for various essential products, including electronics, textiles, footwear, white goods, and solar panels, GRTI said.