NEW DELHI, February 4. /TASS/. The resumption of the trade war between the United States and China could have a positive impact for Indian exporters, as it did during the first term of US President Donald Trump, the Indian publication Business Standard reported, citing a senior government official.
“When the trade war between the US and China took place last time, India was the fourth-largest beneficiary of the trade diversion. Data shows that during the trade war (2017-19), there was a significant jump in exports to the US,” a senior government official said. He warned that India may not be completely immune from additional US tariffs, considering Trump’s announcement of America’s latest policy stance.
According to the publication, exporters have also stated that the imposition of customs duties by the US on imports from China provides huge export opportunities for India to America. The tariffs would affect exports from China to the US as they would push up prices of Chinese goods in the American market, making them less competitive.
Government officials said that sectors such as electronics, pharmaceuticals, textiles, auto components, and chemicals may see a further export boost to the US due to the trade war between Washington and Beijing, the publication says.
The United States is a major trading partner for India. In the 2023-2024 fiscal year, trade between the countries amounted to almost $120 billion. The trade balance was in India’s favor with a surplus of $35.3 billion.
On February 1, US President Donald Trump signed an executive order to impose tariffs on goods from Canada, China, and Mexico. According to the document, duties of 10% are imposed on goods from China. In response to these measures, the State Council of China issued a decree according to which, from February 10, 2025, the country will impose duties on imports of American energy resources. Oil will be subject to a duty of 10%, coal and LNG – 15%. In addition, a duty of 10% will be imposed on American multi-compact cars, pickup trucks, and agricultural machinery.
During his first presidential term (2017-2021), Trump effectively unleashed a trade war with China due to a strong trade imbalance in China’s favor. At that time, the Trump administration pursued a policy of comprehensive tightening of pressure on Beijing and comprehensive containment of China. Washington imposed tariffs on $370 billion worth of Chinese goods, but this did not eliminate the imbalance. Trump also significantly increased pressure on Chinese technology companies, in particular Huawei, under the pretext of threats to US national security.
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