Indian likely to gain from US-China trade war: Experts
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New Delhi: The escalating trade war between the US and China is expected to benefit Indian exporters in increasing their shipments to the American market, according to experts. Federation of Indian Export Organisations (PTI) President S C Ralhan said that imposition of higher tariffs by the US on China will shift demand towards India, which exported goods worth $86 billion to the US in 2024-25. "We may gain from this escalation," Ralhan said. The US has announced an additional 100 per cent tariff on Chinese goods starting November 1, 2025, raising the overall tariff rate on Chinese imports to about 130 per cent.
The move came in response to Beijing's October 9, 2025 decision to impose sweeping new controls on rare earth exports, which are indispensable for US defence, electric vehicles, and clean-energy industries.
At present, US tariffs on Indian goods are 50 per cent, more than that of China's 30 per cent. "Now this 100 per cent additional tariff on Chinese goods will give us an upper edge," a textile exporter said, adding the imposition of higher 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, another exporter said. Toy exporter Manu Gupta too said that high duties on Chinese goods will help attract buyers from both these nations.
