Impact on India by Trump’s Tariff
US tariffs on China and other countries could open export opportunities for India, provided it improves infrastructure, ease of doing business and trade policy.
Key insights
- The US–China trade war has escalated, with China facing a 145% US tariff.
- China retaliated with a 125% tariff on American products.
- A universal 10% tariff applies to all US imports, regardless of origin.
- Indian textiles face a 25% tariff, lower than Bangladesh (37%) and Vietnam (46%), a major opportunity as US buyers seek alternatives.
- Indian electronics exports are about 20% cheaper by comparison, supporting manufacturing.
- China’s need for alternative agricultural markets could raise demand for Indian agricultural exports.
- To capture these gains, India must improve infrastructure, ease of doing business and trade policy.
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