India eyes opportunities amid escalating U.S.-China trade war

The global trade landscape has once again entered turbulent territory, as the United States and China reignite their trade conflict with far-reaching implications. In a dramatic move, U.S. President Donald Trump has imposed a blanket 125% tariff on all Chinese imports, triggering retaliatory measures from Beijing that have raised duties on U.S. goods to 84%.

Also read: India seeks trade deal with US to offset Trump’s tariffs

While India is not directly targeted, its interconnectedness with global supply chains makes it vulnerable. Key sectors such as electronics, pharmaceuticals, and automobiles heavily depend on Chinese inputs. Disruptions could lead to increased costs for smartphones, electric vehicles, and generic medicines, straining both manufacturers and consumers.

However, India also sees emerging opportunities. The White House has temporarily exempted India from reciprocal tariffs for 90 days, providing breathing room for exporters, especially in agriculture and marine products. New Delhi is capitalising on the window, fast-tracking trade talks with Washington and targeting $500 billion in bilateral trade by 2030.

India’s IT and tech sectors may also benefit, as American firms seek alternatives to China for outsourcing and backend services. Still, risks loom large. Tensions over semiconductors and rare earth supplies could delay India’s tech ambitions.

With global GDP growth at risk and trade realignments underway, India must balance caution with strategy. Amid the volatility, the focus remains on long-term stability, domestic manufacturing, and supply chain resilience.