News Excerpt:
US President proposal to increase tariffs on various Chinese goods such as electric vehicles, batteries, and medical supplies could potentially be advantageous for Indian exporters.
More about News:
- The US President announced steep tariff hikes on a number of Chinese imports including EV batteries, EVs, semiconductors, solar cells and medical equipment including face masks, medical gloves, syringes and needles.
- The White House increased tariffs on Chinese EVs from 25% to 100%, doubled tariffs on solar cells from 25% to 50%, and tripled duties on specific steel and aluminium products.
- The US will raise tariffs on non-lithium-ion battery components imported from China from 7.5% to 25%.
- Sources noted that the US is implementing policies to reduce dependence on China, especially in battery manufacturing.
- They mentioned that every country prefers not to rely on a single source, particularly in sectors like mobility.
Impact of US Tariffs on Chinese Imports: Opportunities and Challenges for India's Manufacturing and Trade"
- GTRI think tank stated that the raising of tariffs on EVs, batteries and many other new technology items by the US may push China to dump these products in other markets including India.
- India is also following a policy to ensure the country has domestic capability for manufacturing of electric vehicles (EVs), sources states, adding that India’s policy is sound and there is no need to worry.
- The government is working to attract investments in the EV segment, as seen in the recent policy change in March that cut import taxes from 100% to 15% on specific models, given the manufacturer commits $500 million and sets up a factory.
- It’s a moment for India’s Directorate General of Trade Remedies (DGTR) to remain vigilant and develop its manufacturing capacity.
- GTRI think tank also stated that the higher duties on Chinese products like face masks, syringes and needles, medical gloves and natural graphite creates some export opportunity for India.
- By ramping up production and export of these in-demand products,
- India could enhance its trade footprint in the US market,
- However, India may not get any export advantage on remaining products like the EVs, and semiconductor as India is the net importer of these products.
