The intensifying trade rivalry between the United States and China is set to open lucrative avenues for Indian exporters in the American market. Industry experts believe that the substantial tariffs imposed by the US on Chinese goods will redirect demand towards India, creating a significant competitive advantage.
New Tariffs and Their Impact
The US has announced an additional 100 percent tariff on Chinese goods, effective November 1, 2025, pushing the total duty on Chinese imports to approximately 130 percent, while this move is a direct response to Beijing's October 9, 2025 decision to impose stringent new rules on rare earth exports, critical for American defense, electric vehicle, and clean energy industries. India's exports to the US already stood at $86 billion in 2024-25, and this new dynamic is expected to further bolster these figures.
Currently, Indian goods face a 50 percent tariff in the US, higher than China's previous 30 percent. However, with the new 100 percent additional duty on Chinese products, Indian exporters will gain a substantial edge. A textile exporter highlighted, "The hefty tariffs by the US on imports. From China will create huge opportunities for India to export to the US.
Exporters' OptimismIndian exporters are optimistic about leveraging this situation. Another exporter noted that these tariffs would Notably impact China's exports to the US, making their goods more expensive and less competitive in the American market. Manu Gupta, a toy exporter, also expressed confidence, stating that higher duties on Chinese goods would help attract buyers from both countries. "This will help us. More tariffs will bring parity and give us a level playing field," Gupta added, underscoring the potential for India to emerge as a preferred alternative.
