The US hits China with 100% tariffs! Will it benefit India? This is what experts say – The Times of India

According to the exports, Indian exporters can take advantage of the ongoing tensions between the US and China by taking advantage of the opportunity to increase their exports to the US market.Federation of Indian Export Organizations (FIEO) chairman SC Ralhan said the higher tariffs imposed by the US on Chinese goods could shift demand to India, which exported goods worth $86 billion to the US in 2024-25.“We can take advantage of this escalation,” Ralhan said, as quoted by PTI.The US on Friday announced an additional 100% tariff on Chinese goods from November 1, raising the overall tariff on Chinese imports to around 130%. The move came after Beijing’s decision on October 9 to impose strict new controls on exports of rare earth metals, which are essential to the US defense, electric vehicle and clean energy industries.Currently, the US levies a 50% tariff on Indian goods, including 25% additional tariffs.“Now this 100% additional tariff on Chinese goods will give us an edge,” said a textile exporter, adding that the higher customs duties on Chinese imports will open up huge export opportunities for India in the US market.Another exporter explained that the tariffs would make Chinese goods more expensive in the US, reducing their competitiveness.Toy exporter Manu Gupta also believes the change will help Indian companies attract buyers.“It will help us. High duties will create a parity and give us a level playing field,” said Gupta, adding that US buyers such as retail giant Target have already approached them for new products.Think tank GTRI noted that the escalating trade dispute between the US and China will push up global prices of electric vehicles, wind turbines and semiconductor components. It also highlighted that the US is heavily dependent on China for electronics, textiles, shoes, white goods and solar panels.The US remained India’s largest trading partner for the fourth consecutive year in 2024-25, with bilateral trade reaching $131.84 billion, including $86.5 billion in exports. The US accounts for about 18% of India’s total merchandise exports, 6.22% of its imports and 10.73% of its total merchandise trade.India and the US are currently negotiating a bilateral trade agreement.