By Admin 
Indian exporters can take advantage of the increasing trade tension between America and China. America has imposed new and higher tariffs i.e. import duties on many goods coming from China, due to which Chinese products will become expensive in the American market. Because of this, the demand of American companies and buyers may now move towards India instead of China.
Federation of Indian Export Organizations (FIEO) President SC Ralhan said that this is a good opportunity for Indian exporters. He said that India already exports many types of goods to America and now exports can be increased by taking advantage of this situation. Along with this, it will give Indian companies an opportunity to compete more in the American market and create new buyers.
Due to imposition of tariff on Chinese goods by America, demand may increase towards India. In 2024–25, India exported goods worth $86 billion to America. Regarding this, Ralhan, President of Federation of Indian Export Organizations (FIEO), said, “We can benefit from this increasing tension.”
America imposed 100% tariff on China
On Friday (October 10), America had announced the imposition of additional 100% tariff on goods coming from China from November 1. With this the total duty on Chinese imports will reach approximately 130%. This step was taken after Beijing imposed strict controls on the export of rare earths on October 9. Rare earths are essential for America’s defense, electric vehicle and clean energy industries.
Currently the US imposes 50% duty on Indian goods, which includes an additional 25% tariff. SC Ralhan said, “Now we will benefit from 100% additional tariff on Chinese goods. This will open up huge opportunities for India in the American market.”
Another expert said that due to this tariff, Chinese goods will become expensive in the American market and their competition will reduce. Toy exporter Manu Gupta also believes the change will help Indian businesses attract new buyers. He said, “It will be beneficial for us. Higher tariff will provide a level playing field.” He also told that American retail giant Target has approached him for new products.
Think tank GTRI said that the growing trade dispute between the US and China could increase global prices of electric vehicles, wind turbines and semiconductor parts. In addition, the US is heavily dependent on China for electronics, textiles, footwear, white goods and solar panels.
America is India’s largest trading partner for the fourth consecutive year
America remains India’s largest trading partner for the fourth consecutive year in 2024–25. Bilateral trade reached $131.84 billion, which included exports of $86.5 billion. The US accounts for about 18% of India’s total merchandise exports, 6.22% of its imports and 10.73% of its total trade. Currently India and America are negotiating a bilateral trade agreement.
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