The ongoing trade war between the United States and China is anticipated to benefit India’s export sector, according to government sources cited by ANI. Despite potential challenges, officials remain optimistic about increased trade opportunities with the US.
Sources noted that while India may not be entirely spared from the impact of higher tariffs, the overall sentiment among Indian exporters is positive. “Some Indian products might face trade actions from the US, but our exports to America are expected to rise significantly,” a government source revealed.
The development follows recent moves by US President Donald Trump, who imposed a 10% tariff on Chinese goods starting Tuesday. In retaliation, China levied a 15% tariff on coal and liquefied natural gas and a 10% tariff on crude oil imports from the US. The trade conflict stems from US concerns over illegal immigration and drug smuggling, including fentanyl.
Trump had initially announced tariffs on imports from China, Mexico, and Canada. However, tariffs on Mexico and Canada were deferred by a month as negotiations continued.
Despite the brewing tensions, officials are confident about India’s strategic advantage. “We have engaged with Indian exporters, and the mood is upbeat. There is a significant rise in export orders and value projections,” one source explained.
India had previously benefitted during Trump’s first term amid trade tensions between the US and China. “Back then, our exports to the US were around $57 billion. They rose to $73 billion during the trade war period,” the source added, highlighting the historical precedent for gains in similar scenarios.
China, meanwhile, has condemned the new tariffs, with its Commerce and Finance ministries criticizing the US for “seriously violating” international trade rules. China vowed to challenge the decision at the World Trade Organization and implement unspecified countermeasures.
(Inputs from ANI)
