The trade war between the US and China is expected to benefit Indian exporters in increasing their shipments to the American market. Experts say that the country was the fourth-largest gainer when the US imposed higher duties on Chinese goods during US President Donald Trump’s first tenure.
After coming to power again, Trump signed an order to impose stiff tariffs on imports from China, fulfilling a campaign promise but raising the prospect of increased prices for American consumers. Exporters have also stated that the imposition of customs duties by the US on imports from China provides huge export opportunities for India to America. The tariffs would affect exports from China to the US as they would push prices of their goods in the American market, making them less competitive.
The move can create opportunities for Indian exports due to the trade diversion effects as US buyers will seek alternative suppliers to avoid higher costs, according to Federation of Indian Export Organisations (FIEO). During April-November 2024-25, the US was the second-largest trading partner of India with $82.52 billion bilateral trade in goods ($52.89 billion worth of exports, $29.63 billion of imports and $23.26 billion trade surplus). In 2021-24, America was the largest trading partner of India.
