New Delhi, Feb 3 (PTI) – The United States' decision to impose tariffs on imports from China, Canada, and Mexico has created significant export opportunities for India, according to industry experts. The move is expected to make goods from these nations costlier in the American market, thereby reducing their competitiveness and pushing US buyers to explore alternative suppliers.
Ajay Sahai, Director General of the Federation of Indian Export Organisations (FIEO), highlighted the potential benefits for Indian exporters due to this trade shift. “The move can create opportunities for Indian exports due to trade diversion effects as US buyers will seek alternative suppliers to avoid higher costs,” Sahai noted. However, he emphasized that the extent of gains for India would depend on its production capacity and cost competitiveness.
Industries expected to benefit the most include electrical machinery and components, auto parts, mobile phones, pharmaceuticals, chemicals, apparel, and fabrics.
The tariffs were implemented after US President Donald Trump signed an executive order on Saturday, citing an economic emergency. The order levies a 10% tariff on all imports from China and 25% on imports from Mexico and Canada, except for Canadian oil, which will be taxed at a lower rate of 10%.
India has maintained strong trade relations with the US. During April-November 2024-25, the US was India's second-largest trading partner, with $82.52 billion in bilateral trade, comprising $52.89 billion in exports and $29.63 billion in imports, resulting in a trade surplus of $23.26 billion for India.
Previously, the US was India's largest trading partner between 2021 and 2024, a trend that could strengthen further with the latest tariff adjustments.
Last updated by a enewsx: