The increasing trade tensions between the US and China are likely to benefit Indian exporters. The US has announced a 100 percent additional tariff on Chinese goods from November 1, 2025, which will make Chinese products more expensive in the American market and could create new opportunities for India to boost its exports.
US-CHINA TRADE WAR: Amidst the escalating trade war between the US and China, India is expected to gain an advantage in exports. The US has announced a 100 percent additional tariff on Chinese goods starting November 1, 2025, which will make Chinese products more expensive in the American market. This will provide Indian exporters with an opportunity to sell their goods at more competitive rates in the US market. In 2024-25, India exported goods worth $86 billion to the US, and experts suggest that this figure could further increase due to the tariffs.
US Imposes New Tariffs on China
The US has decided to impose an additional 100 percent tariff on goods imported from China starting November 1, 2025. This will bring the total tariff rate on Chinese goods to approximately 130 percent. This move comes in response to Beijing's decision on October 9, 2025, which imposed strict regulations on the export of rare earth metals. These rare minerals are considered crucial for the American defense, electric vehicle, and clean energy industries.
Opportunity for India
This situation could prove highly beneficial for Indian exporters. S. C. Ralhan, President of the Federation of Indian Export Organisations, stated that the increase in US tariffs on China would shift demand towards India. India exported goods worth approximately $86 billion to the US in the financial year 2024-25. This clearly indicates that Indian exporters stand to gain significantly from the increased US tariffs.
A textile exporter mentioned that the imposition of heavy duties by the US on goods imported from China would strengthen the competitive position of Indian products. They believe that the demand for Indian goods in the American market will increase.
Rising Demand for Indian Products in the US Market
Experts and exporters believe that the increased tariffs on China will raise the prices of their goods in the American market. This will make Chinese products more expensive for US buyers, creating better opportunities for Indian exporters. Toy exporter Manu Gupta stated that imposing high duties on China would bring balance to trade between India and the US. He added that this would give Indian products equal opportunities in global competition.
Potential Impact and Opportunities
Following the imposition of tariffs up to 130 percent on China, there could be an increase in demand for Indian products in the US. Indian exporters are expected to benefit in sectors such as textiles, electronic goods, toys, and consumer goods. This could reduce India's trade deficit and open up new export markets.
Due to the US-China trade dispute, the prices of Chinese goods will rise in the American market. As Indian products become available at competitive prices, buyers may increasingly turn towards India. This could also enable small and medium-sized exporters to enter the US market and capitalize on new opportunities.
India's Advantage in the US Market
Indian exporters are devising strategies to capitalize on this situation. They are focusing on increasing product availability, customization, and quality improvement in the US market. Furthermore, the Indian government is also considering options for easier policies and tax relief for exporters.
Experts state that the US-China trade war could have a positive long-term impact on India. Indian goods will become a cheaper and better quality alternative for American buyers. This will boost exports and strengthen the Indian economy.
