Escalating tensions between the US and China may bode well for Indian traders in the long term, opine experts.
With US President Donald Trump announcing 100 per cent tariffs on Chinese imports from November, it may translate into increased Indian goods’ shipments to the US markets, signaling a shift in India’s favour, said S C Ralhan, President, Federation of Indian Export Organisations (FIEO).
“We may gain from this escalation,” Ralhan said during a press meet, highlighting India’s goods shipment to the US in 2024-25, which totaled USD 86 billion.
While Trump’s announcement came in response to Beijing’s October 9, 2025, decision to impose sweeping new controls on rare earth exports, which are indispensable for US defense, electric vehicles, and clean-energy industries, the tariffs that US places on Indian goods are also high at 50 per cent, more than that of current tariffs on China at 30 per cent.
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“Now this 100 per cent additional tariff on Chinese goods will give us an upper edge,” a textile exporter said, adding that the imposition of higher customs duties by the US on imports from China provides huge export opportunities for India to America.
Since higher tariffs would push prices of Chinese goods in the American markets, they would inevitably be rendered less competitive, said another exporter.
Manu Gupta, who runs a business of toys, agreed 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 that American buyers like retail giant, Target, have recently reached out to them for new products.
Think tank GTRI has also released its latest report that predicts a shift in US trade policies in India’s favour as trade tensions with China increase. This will impact prices of EVs, wind turbines, and semiconductor parts in the global markets, the report adds.
America depends heavily on China for electronics, textiles, footwear, white goods, and solar panels, it said.
The US remained India’s largest trading partner for the fourth consecutive year in 2024-25, with bilateral trade valued at USD 131.84 billion (USD 86.5 billion exports).
The US accounts for about 18 per cent of India’s total goods exports, 6.22 per cent in imports, and 10.73 per cent in the country’s total merchandise trade. India and the US are negotiating a bilateral trade agreement.
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