‘Replace Chinese Goods With American Products’: Govt Tells Industry

The Indian government is considering tariff reductions and broader market access for US goods to avert US reciprocal tariffs set to take effect on April 2.

The Ministry of Commerce and Industry has urged Indian businesses to explore areas where imports from China and other countries could be substituted with goods from the United States, days after US President Donald Trump slammed India’s high tariffs on automobiles and agricultural products. [Source:  Indian Express]

Meanwhile, the new policy can escalate tensions with major economies such as China and the European Union.

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Trump's tariff threats

It is a step to reduce economic tension with the US. Otherwise, Trump’s reciprocal tariffs would impact Indian exports.

Steel and aluminium exports worth $5 billion have already been hit by the American government’s 25% tariff.

The MSME sector’s $3 billion iron and steel products were affected.

$1 billion worth of shipments currently en route to the US will also face new tariffs.

To ease trade tensions, India is considering offering greater access to US goods in sectors such as: [Source: Trak.in]

Textiles – Open to zero-duty access for US imports.

Gems & Jewellery – Proposes reducing diamond import duty from 5% to 2.5%.

Also under discussion is the Electronics sector.

India hopes to benefit from the process

As Donald Trump raises tariffs on China, Mexico, and Canada, Indian manufacturers will see increased orders.

Despite potential opportunities, WTO warns of trade volatility due to tariff uncertainties.

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