Trump Imposes 100% Tariff On China, India Set To Gain Big As Textile & Footwear Exports Poised To Rise

Mumbai: The latest trade war between the US and China could turn into a golden opportunity for Indian exporters. US President Donald Trump has announced a 100 percent tariff on Chinese goods, to be implemented from November 1, on top of the existing 30 percent duty. This means Chinese products will now face a total tariff of 130 percent when entering the US market.

Trump also said his administration will tighten export controls on key software products starting the same day.

This move came after China restricted exports of rare earth materials on October 9, which are vital for electronics and renewable energy industries. Experts believe this escalating tension could affect global trade but give India a major edge.

Why Indian Exporters Will Benefit

According to industry experts, the steep tariff hike on Chinese goods will make them much more expensive in the US, creating an opening for Indian exporters. Currently, Indian goods face a much lower 50 percent tariff, making them more competitive.

S.C. Ralhan, President of the Federation of Indian Export Organisations (FIEO), said India’s exports worth USD 86 billion (Rs 7.3 lakh crore) could see further growth as US buyers look for alternatives to China.

Sectors like textiles, toys, electronics, and footwear are expected to see the biggest jump.

For instance, toy exporter Manu Gupta said US retailers such as Target have already reached out to Indian suppliers for new product lines.

Key Sectors to Gain the Most

Indian sectors likely to benefit include:

- Textiles and garments

- Toys and footwear

- Electronics and white goods (like refrigerators and washing machines)

- Solar panels and renewable equipment

As Chinese goods become costlier, US importers may shift to Indian manufacturers for cheaper and reliable alternatives.

Global and Regional Impact

The trade war could hurt America’s other trade partners like Mexico and Canada, while Asian economies such as South Korea, Japan, and Singapore may also face disruptions in their supply chains.

According to think tank GTRI, prices of EV components, wind turbines, and semiconductors could rise globally, affecting production costs worldwide.

India-US Trade Outlook

India and the US recorded USD 131.84 billion in bilateral trade during 2024–25, with USD 86.5 billion worth of exports from India. The US remains India’s largest trading partner, accounting for 19 percent of total merchandise exports. With both nations exploring a bilateral trade agreement, this tariff war could further strengthen India’s role in the global supply chain.

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