The United States’ decision to impose steep tariffs—now reaching up to 145 per cent—on Chinese imports could present a valuable opportunity for Indian exporters, particularly in sectors like textiles, leather, engineering, and electronics. But this advantage may be fleeting unless India moves swiftly to strengthen its export framework, according to the Global Trade Research Initiative (GTRI).
The think tank has urged the Indian government to take proactive steps such as reintroducing the interest equalisation scheme to make working capital loans more affordable for small businesses, and to speed up customs processes to ensure faster delivery of goods.
Ajay Srivastava, GTRI’s founder, highlighted that a new executive order from the US includes a 90-day suspension of certain country-specific tariffs. This provides Indian exporters with a short-lived but significant opportunity to enhance their presence in the American market. While Chinese products now face sharply increased tariffs of up to 145 per cent, Indian goods will only be subject to a 10 per cent additional duty—considerably less than what was originally proposed in early April.
“This temporary relief could help Indian products become more competitive in the US market, especially in sectors where India competes directly with China, such as textiles, leather goods, engineering items, and electronics,” he said. He advised Indian exporters to closely examine the updated US executive order and customs rules to determine which products are affected, which may be exempt, and the applicable timelines.
One key detail in the revised order is that if a product includes at least 20 per cent US-made components, only the non-US portion will be taxed—provided the breakdown of value is clearly documented.
Additionally, goods that were already en route to the US before 5 April and that arrive by 27 May will not be subject to the new tariffs. Products shipped between 5 and 9 April will incur just the flat 10 per cent duty, thereby avoiding the heavier country-specific charges.
Trump hits pause on most tariff hikes—but not for China
Facing mounting pressure from a spiralling global economy, President Donald Trump on Wednesday unexpectedly paused most of his extensive tariff increases, granting a 90-day reprieve to 57 trade partners. However, China was notably left out.
Instead, the US ramped up pressure on Beijing, initially hiking tariffs on Chinese imports to 125 per cent. A day later, this was raised again to 145 per cent after China responded by slapping 84 per cent tariffs on American goods in retaliation.
