New Delhi: China’s proposal to reduce tariffs on U.S. goods from 125% to 10% in 90 days, and the U.S. reciprocity proposal to reduce Chinese goods taxes from 145% to 30%, bringing challenges and opportunities for India.Lower tariffs could support the growth of U.S.-China bilateral trade in high-value areas, such as electronics, machinery and chemicals.
The measures are part of the U.S.-China trade deal announced on Monday, representing a significant meltdown in trade tensions between the two large economies. The deal was concluded under negotiations between India and the United States on Bilateral Trade Agreement (BTA), and the two sides are expected to end temporary arrangements by July 8, following another 26% reciprocal tariffs on Indian goods entering the United States.
The issue can be discussed in the event of Indian trade negotiators visiting Washington next week to conduct further negotiations on the BTA as a tariff advantage for Indian exporters, as the higher duties of earlier Chinese goods could be hit.
The measures are part of the U.S.-China trade deal announced on Monday, representing a significant meltdown in trade tensions between the two large economies. The deal was concluded under negotiations between India and the United States on Bilateral Trade Agreement (BTA), and the two sides are expected to end temporary arrangements by July 8, following another 26% reciprocal tariffs on Indian goods entering the United States.
The issue can be discussed in the event of Indian trade negotiators visiting Washington next week to conduct further negotiations on the BTA as a tariff advantage for Indian exporters, as the higher duties of earlier Chinese goods could be hit.
The U.S.-China deal could intensify competition among Indian exporters in markets such as Southeast Asia, Africa and Latin America that New Delhi recently broke into.
“India can use this shift to strengthen exports of sectors that are relatively isolated from the U.S.-China trade, such as pharmaceutical APIs, gems and jewelry, engineering products, organic chemicals and IT-supported services, fieo, major areas such as steel, aluminum and automatic enterprises, rely on major sectors of steel, and have another 25% behavior. The so-called India must actively interact with the U.S. to ensure and expand access to its preferential trade and emphasize its role as a reliable alternative procurement destination.
