The latest trade tensions between the United States and China could offer a significant boost to Indian exporters, following US President Donald Trump’s announcement of a 100% tariff on Chinese goods from 1st November, in addition to the existing 30% duty. The move will effectively impose a 130% total tariff on Chinese imports entering the US market.
Experts believe the intensifying trade dispute could disrupt global commerce but present India with a valuable opportunity. The sharp tariff increase on Chinese goods will make them significantly costlier in the US, allowing Indian products, which currently face a lower 50% tariff, to become more competitive.
S.C. Ralhan, President of the Federation of Indian Export Organisations (FIEO), said India’s exports, valued at Rs. 7.3 lakh crore (US $ 86 billion), could witness further growth as American buyers increasingly seek alternatives to Chinese suppliers. He added that sectors such as textiles, toys, electronics, and footwear were likely to benefit the most.
Among the key sectors poised to gain are textiles and garments, toys and footwear, electronics and white goods, and solar panels and renewable equipment. As Chinese products become prohibitively expensive, US importers may pivot to Indian manufacturers for cost-effective and reliable supply options.
In the India–US trade corridor, bilateral trade reached US $ 131.84 billion in 2024–25, with US $ 86.5 billion worth of Indian exports. The US remains India’s largest trading partner, accounting for 19% of total merchandise exports. With both countries exploring a bilateral trade agreement, analysts suggest the ongoing tariff war could further cement India’s position in the global supply chain.
Sanjay K Jain, MD of TT Limited, said that exporters with a good business share in the USA have said that all existing orders have been completed but no new orders have been gained for the last 2 months since everyone is waiting and watching, but they still had a positive outlook due to the recent 100% tariff announcement on China.
He also opined that China has 25% plus share of USA Textile & Clothing Imports which means this 100% tariff on it will be a big plus to India along with Vietnam & Bangladesh and that this will be a critical week, as the industry will need to see how buyers react.
