US 125% tariff on China could fuel India`s exports by small firms made products: GTRI
The Global Trade Research Initiative (GTRI) in its latest report has said that the US crackdown, which has imposed 125 per cent import tariffs on China, has unexpectedly created a rare opportunity for India’s small manufacturers, offering them a short-term export window. It said that the US move could potentially open new avenues for Indian manufacturers to increase exports to the US, capitalising on the shift in trade dynamics caused by the tariffs.
In 2024, the US imported over $148 billion worth of such products, with China alone supplying $105.9 billion-nearly 72 per cent of the total. India’s share was just $4.3 billion, or 2.9 per cent. It highlighted that due to China’s 125 per cent import tariffs, a large gap has opened in the US markets, which the small Indian manufacturers could fill.
It mentioned ‘Indian producers already make many of these goods–from locks to lamps to plasticware–but mostly at a small scale. With the right government push on export incentives, product certifications, and financing, these firms could expand quickly and tap into this $100 billion opening. But the window is narrow-and may not stay open for long.’
