US hits China with 100% tariffs! Will it benefit India? Here’s what experts say

Indian exporters may benefit from the ongoing tensions between the US and China, using the opportunity to increase their shipments to the American market, according to exports.Federation of Indian Export Organisations (FIEO) President SC Ralhan said that the higher tariffs imposed by the US on Chinese goods could shift demand towards India, which exported goods worth $86 billion to the US in 2024–25.“We may gain from this escalation,” Ralhan said, as cited by PTI.The US on Friday announced an additional 100% tariff on Chinese goods starting November 1, raising the overall tariff rate on Chinese imports to about 130%. This move came after Beijing’s October 9 decision to impose strict new controls on rare earth exports, which are essential for America’s defence, electric vehicle and clean-energy industries.Currently, the US levies a 50% tariff on Indian goods which includes 25% additional tariffs.“Now this 100% additional tariff on Chinese goods will give us an upper edge,” a textile exporter said, adding that the higher customs duties on Chinese imports will open up huge export opportunities for India in the American market.Another exporter explained that the tariffs would make Chinese goods more expensive in the US, reducing their competitiveness.Toy exporter Manu Gupta also believes the change will help Indian businesses attract buyers.“It will help us. High duty will create a parity and will give us a level playing field,” Gupta said, adding that American buyers such as retail giant Target have already approached them for new products.Think tank GTRI noted that the escalating trade dispute between the US and China will push up global prices of electric vehicles, wind turbines and semiconductor parts. It also highlighted that the US relies heavily on China for electronics, textiles, footwear, white goods and solar panels.The US remained India’s largest trading partner for the fourth consecutive year in 2024–25, with bilateral trade reaching $131.84 billion, including $86.5 billion in exports. The US accounts for about 18% of India’s total goods exports, 6.22% of its imports, and 10.73% of its total merchandise trade.India and the US are currently negotiating a bilateral trade agreement.