According to the US trade war, the Indian exporters can give a competitive advantage, experts say

The increasing trade war between the US and China could benefit Indian exporters, as US rates on Chinese goods rise to 130%. Experts believe that this shift will improve India’s competitive advantage. Here’s what experts in the industry think. Indian exporters may benefit from the US-China Trade War Escalation (AP) amid continuing trade war between the United States and China, experts believe it will probably pave a way for Indian exporters to increase their shipping to the US market, which in turn will benefit. The latest escalation in the conflict between the two largest economies was caused by Beijing’s decision on October 9 to sharpen export control on Rare Earth, which is a critical source for US defense, electric vehicles and clean-energy industries. In response to this move, the US announced an extra rate of 100 percent on Chinese goods, with effect from November 1, 2025, increasing the total tariff rate on Chinese imports to about 130 percent. How will it benefit India? The president of the Federation of Indian Export Organizations said the imposition of steep US rates on Chinese goods would shift demand for India. “We can benefit from this escalation,” Pti reports quoted Ralhan. Although US rates on Indian goods currently 50 percent are higher than the previous 30 percent of China, the new 100 percent extra tariff on Chinese products will give a ‘top rand’ to India, exporting goods worth $ 86 billion to the US in 2024-25. Exporters of sector -specific opportunities across different sectors are doing great opportunities that this scenario offers. A textile exporter emphasized that the higher customs duties on Chinese products will provide ‘big export opportunities’ for India. This tariff increase will raise the prices of Chinese goods in the US market, making them less competitive and moving buyers to alternatives, another exporter told the news agency. The mirror of the idea said a toy exporter Manu Gupta said that high duties on Chinese goods would help attract buyers from both of these countries. “It will help us. High service will create a parity and give us a level playing field,” Gupta said, adding that US buyers like the retail giant Target have issued them for new products. The economic impact of the trade war thinking tank GTRI has warned that the increasing trade tensions between the US and China are likely to increase the world prices of electric vehicles (EVs), wind turbines and semiconductor parts. This is largely due to the great dependence on America for various essential products, including electronics, textiles, shoes, white stuff and solar panels, Grti said.