Tariff War, which started again between China and America, may have a positive impact on India and Indian exporters can take advantage of it. The same was seen with the increase in the first term of US President Donald Trump. A senior government official said, “The last time the trade war broke out between the US and China, India was the fourth most profitable country due to change in trade. Statistics are witnesses that there was a lot of rise in exports from India to America due to trade war between 2017 and 19.
A few days after becoming President of the US, on Saturday, Donald Trump announced a 25 per cent tax on imports from two major neighboring partner countries like Canada and Mexico. Not only this, he also announced to impose 10 percent tax on goods from China. Canada and Mexico announced to take steps in return. After this, the decision to impose duty on imports of goods of these two countries has been postponed for 30 days when there is an agreement with Trump. But China announced a huge duty on goods imported from the US, giving a tit on Tuesday like on Tuesday.
Trump’s decision to impose heavy duty on imports from some countries is in line with his conservationist ‘America First Trade Policy’. Under this, he wants to levy global supplementary fees to deal with the alleged inappropriate and unbalanced trade system. A Foreign Revenue Service (ERS) is also being formed to recover fees, taxes and other foreign revenue.
Officials have warned that India cannot avoid the effect of additional fees imposed by the US. However, exporters have said that the US step to impose customs duty on goods imported from China will create new export opportunities to the US for India. The increase in fee increase will affect Chinese exports as this will increase the prices of Chinese goods in the US market. This will weaken China competition.
Government officials say that the new trade war between Washington and Beijing will provide a big advantage in exports to areas such as electronics, medicines, textiles, auto equipment and chemicals of India.
The export situation between India and the US is quite strong and this export is steadily increasing. The bilateral commodity trade between the two countries was close to $ 120 billion during the financial year 23-24. The trade balance with the US with $ 35.3 billion surplus has been in favor of India. America is also India’s largest trade partner.