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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US President Donald Trump took a major economic decision against China on Saturday (11 October 2025). He announced that from November 1, 2025, 100 percent tariff will be imposed on products coming from China. This tax will also be applicable on those items on which duty is already being charged. This decision means that now American consumers and companies may have to pay double the price for Chinese goods than before.

Trump also announced that export controls on critical software will be implemented from November 1. Its purpose is to prevent China from getting easy access to American technology. This step has been taken in response to the recent restrictions imposed by China on the export of rare earth minerals. These minerals are considered very important in electronics, defense and energy sectors.

China has become very aggressive: Trump

Donald Trump, while sharing a long message on his social media platform Truth Social, said that China is now acting very aggressively. He wrote that China is sending letters to the countries of the world to impose export controls on many goods, especially rare earth minerals. Trump said that this policy will have a serious impact on the global market and supply chain. He said that this policy of China will create problems for every country, because rare earth minerals are used in mobiles, electric vehicles, computer chips and defense equipment.

America will not become China’s prisoner: Trump

Trump said that China’s aim is to hold the world economically hostage, but America will not let this happen. He described the restrictions imposed by China on the export of rare earth minerals as “sinister and hostile steps”. Trump said that China had been working on this strategy for a long time and now its real intentions have come to light.

America also has counter power

In his statement, Trump also said that America also has such monopoly rights which can have a greater impact than China. He said that till now these rights had not been used, but America is ready to use them if the circumstances change. According to Trump, China has sent a detailed letter to many countries which contains a list of minerals on which export ban has now been imposed.

Trump-Xi meeting canceled, meeting will not take place in APEC conference

Trump also told that his meeting with Chinese President Xi Jinping was scheduled during the APEC summit to be held in South Korea, but now it will not happen. He said that in the present situation this meeting has no meaning. America will wait for China’s response and after that further strategy will be decided.

Start of new trade war?

After this statement, the stir in international politics has intensified. Many experts believe that this step of Trump could be the beginning of a new trade war between America and China. This tension can affect global trade, technology industry and energy sector.

Potential impact on the global economy

Economic analysts say that increasing US tariffs on China will have a major impact on the global supply chain and manufacturing industry. If China retaliates, the conflict could spread to semiconductor, automobile, defense and energy sectors. Earlier too, an increase in inflation was seen due to trade disputes between America and China. Now that both countries are at the center of technological competition, this dispute may deepen further.

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