US-China Trade War Creates New Opportunities for Indian Exporters in American Markets

US tariffs on Indian goods currently stand at 50 percent, exceeding China's 30 percent rate.

New Delhi:

According to experts, the intensifying trade conflict between the United States and China is anticipated to create favorable conditions for Indian exporters by increasing their shipments to American markets.

S C Ralhan, President of the Federation of Indian Export Organisations, stated that higher tariffs imposed by the US on Chinese goods will redirect demand toward India, which exported merchandise worth $86 billion to the United States in 2024-25.

"We may gain from this escalation," Ralhan remarked.

The United States has announced an additional 100 percent tariff on Chinese products effective November 1, 2025, which will elevate the overall tariff rate on Chinese imports to approximately 130 percent.

This action was taken in response to Beijing's October 9, 2025, decision to implement comprehensive new restrictions on rare earth exports, which are critical for US defense systems, electric vehicles, and clean-energy industries.

Currently, US tariffs on Indian products are 50 percent, higher than China's 30 percent.

"Now this 100 percent additional tariff on Chinese goods will give us an upper edge," commented a textile exporter, adding that the imposition of higher customs duties by the US on Chinese imports creates substantial export opportunities for India in the American market.

Another exporter noted that these tariffs would impact exports from China to the US by increasing prices of Chinese products in American markets, thereby reducing their competitiveness.

Toy exporter Manu Gupta also mentioned that elevated duties on Chinese merchandise will help attract buyers from both nations.

"It will help us. High duty will create a parity and will give us a level playing field," Gupta stated, adding that American retailers like Target have already approached them regarding new products.

Think tank GTRI indicated that escalating trade tensions between the US and China will drive up prices of electric vehicles, wind turbines, and semiconductor components in global markets.

The United States relies heavily on China for electronics, textiles, footwear, white goods, and solar panels, according to GTRI.

The US maintained its position as India's largest trading partner for the fourth consecutive year in 2024-25, with bilateral trade valued at $131.84 billion ($86.5 billion in exports).

The United States accounts for approximately 18 percent of India's total goods exports, 6.22 percent in imports, and 10.73 percent of the country's total merchandise trade. India and the US are currently negotiating a bilateral trade agreement.