Team Blitz India
US President Joe Biden’s plan to levy high tariffs on a host of Chinese products, including electric vehicles (EVs), batteries, and medical supplies, will likely benefit Indian exporters, government officials and trade experts believe.
Higher duties on Chinese face masks, syringes, needles, medical gloves and natural graphite could aid Indian exports of these products. By scaling up production and exports of these sought-after products, India stands to boost its presence in the US market, they said.
The White House has hiked tariffs on Chinese EVs from 25% to 100%, the doubled levies on solar cells from 25% to 50%, and tripled the duty on certain steel and aluminium products from 7.5% or less to 25%.
Tariffs on non-lithium-ion battery parts shipped from China to the US will also increase from 7.5% to 25%. Previously untaxed Chinese items such as face masks, critical minerals, and ship-to-shore cranes will now be subject to a 25% tariff.
Washington has reportedly said that these tariffs will hit an estimated $18 billion worth of imports from China. “It will certainly open gates for Indian products in the markets of developed economies,” said a senior government official, who wished not to be named.
“The US is one of the major export markets for most Indian goods, such as diamonds, medical appliances and accessories, agricultural products, refined petroleum, rice, textiles, and apparel, among others.” Experts also cautioned about the possible dumping of Chinese goods in India. With the US and EU facing reduced imports of Chinese EVs due to tariff hikes, Beijing might divert these products to other markets, including India.
“Certain medical products, including PPE kits, syringes, gloves, and others, will enter the US market. India’s position as the second-largest producer of PPE kits, masks, face masks, syringes, needles, and medical gloves will give us a significant advantage, allowing us to benefit from this opportunity,” said Ajay Sahai, director general of the Federation of Indian Export Organizations (FIEO)
