High Tariffs On China Help Some Indian Products Become More Competitive In US

Imposition of steep 125 per cent tariffs on China by the US could help Indian products from sectors such as textiles, leather, engineering, and electronics become more competitive in America, think tank GTRI said on Friday.

However, the benefits may be short-lived unless India proactively leverages this breathing space to strengthen its export ecosystem, streamline compliance processes, and enhance engagement with US buyers, the Global Trade Research Initiative (GTRI) said.

It suggested that the government reintroduce interest equalisation scheme to help small firms with access to cheaper working capital credit and customs expediting shipments. The 90-day suspension of country-specific tariffs, as outlined in the new executive order, offers a small window of opportunity for Indian exporters, GTRI Founder Ajay Srivastava said.

While Chinese goods now face steep tariffs of up to 125 per cent, imports from India will be subject to a flat 10 per cent additional duty, significantly lower than the earlier punitive rates proposed under the April 2 order.