Govt trying to evaluate impact of US duties on certain countries: Report

India is likely to analyse with the domestic industry the impact of tariffs announced by the US on countries like China to assess the positive or negative implications, if any, sources said on Thursday.

Though the duties on China are expected to help increase exports from India to the US due to the duty arbitrage, there could be a possibility of dumping of goods from the neighbouring country as it has excess capacity in almost every sector.

India has imposed anti-dumping duties on several goods, including chemicals imported from China, and a number of anti-dumping investigations are going on.

"We are trying to analyse the announcements made by the US on increasing tariffs. We will take the decision in due course. We are also asking our industry how these tariffs are going to affect them positively or negatively. We are looking at the exact items on which tariffs will be imposed in China," they said.

 

They added that India was the fourth-largest gainer when the US imposed higher duties on Chinese goods during US President Donald Trump's first tenure.

After coming to power again, Trump on Saturday signed an order to impose stiff tariffs on imports from China, fulfilling a campaign promise but raising the prospect of increased prices for American consumers.

Exporters have also stated that the imposition of customs duties by the US on imports from China provides huge export opportunities for India to America. The tariffs would affect exports from China to the US as they would push the prices of their goods in the American market, making them less competitive.

"The move can create opportunities for Indian exports due to the trade diversion effects as US buyers will seek alternative suppliers to avoid higher costs," Federation of Indian Export Organizations (FIEO) Director General Ajay Sahai has said.

He said the extent of benefits depends on India's production capacity and competitiveness.

During April-November 2024-25, the US was the second-largest trading partner of India with USD 82.52 billion bilateral trade in goods (USD 52.89 billion worth of exports, USD 29.63 billion of imports with USD 23.26-billion trade surplus). In 2021-24, America was the largest trading partner of India.