India will benefit significantly from the 100% tariff on China, increasing demand for Indian goods in the US market: Experts

New Delhi. The tariff dispute between the US and China has deepened. US President Donald Trump has announced a 100% tariff. This could also impact India’s economy. Experts believe this could create new opportunities for Indian exporters. They say that the US’s imposition of an additional 100% tariff on Chinese products could increase demand for Indian goods in the US market. S.C. Ralhan, President of the Federation of Indian Export Organizations (FIEO), said, “This escalating tension could benefit us. US importers will now seek alternative supplies, and India could prove to be a reliable option for them.” It should be noted that in the 2024–25 fiscal year, India exported $86 billion to the US.

US President Donald Trump on Friday announced a 100% additional tariff on products imported from China, effective November 1. This will bring the total tariff on Chinese goods to approximately 130%. This move comes in response to China’s new restrictions on the export of rare earth minerals.

What are Indian industry’s expectations?
A textile exporter said, “Currently, the US imposes a duty of approximately 50% on Indian goods, including a 25% additional tariff. But imposing a 100% additional tariff on China will give us a market advantage.” Manu Gupta, a toy exporter, said, “This change will be beneficial for Indian companies. Higher tariffs will create a level playing field. American buyers, such as retail giants, are already showing interest in our new products.”

The think tank Global Trade Research Initiative (GTRI) has warned that the US-China dispute could lead to a rise in global prices for electric vehicles, wind turbines, and semiconductor parts. According to the report, the US is highly dependent on China for electronics, textiles, footwear, home appliances, and solar panels.

India-US Trade Situation
The US remains India’s largest trading partner for the fourth consecutive year. Bilateral trade reached $131.84 billion in 2024–25, with exports representing $86.5 billion and imports representing $45.3 billion. The US accounts for 18% of India’s total merchandise exports, 6.22% of imports, and 10.73% of total trade. The two countries are in the process of negotiating a bilateral trade agreement.

How will the impact on India be significant?
India’s textile, toy, footwear, electronics, and white goods sectors could benefit significantly. US retail importers may shift away from China to India, Vietnam, and Mexico. Indian exporters will need to increase their focus on quality and supply capacity to make this opportunity sustainable.