India Steps Up Vigil Against Cheap Chinese Imports Amid US Tariff Hike

India has stepped up its watch to block cheap Chinese imports following the steep US tariff hike on goods from the Communist country. Commerce Secretary Sunil Barthwal has chaired multiple meetings to review the situation. Officials are also in touch with industry players to understand the ground impact and frame a response.

The Commerce Ministry was already monitoring Chinese steel imports. These had hurt Indian industry after the earlier US tariff hike. Now, the surveillance has expanded to other Chinese goods, a senior official confirmed.

The US has raised tariffs across all countries. However, China is the worst hit. The 34 per cent hike announced by President Donald Trump takes the total duty to 54 per cent.

China hit back by raising duties on all American goods by 34 per cent. It also imposed export curbs on rare earth metals critical for electronics and defence. Several US defence-related firms now face Chinese restrictions as part of this tit-for-tat action.

India’s exports to the US form only 4 per cent of its GDP. So, the 27 per cent US tariff hike on Indian goods will have a limited direct impact, said an SBI Research report.

The tariffs on Indian goods are lower than those on its Asian peers. China faces 34 per cent, Thailand 36 per cent, Indonesia 32 per cent, and Vietnam 46 per cent. This gives India a competitive edge and could boost its exports in the long term.

Higher tariffs on textile exporters like China, Bangladesh, and Vietnam may lower demand. India, with $7 billion in textile exports to the US during April–December FY25, could face a short-term dip but may gain in the long run.

In electronics, China now faces tariffs of 54 to 79 per cent. India stands in a better position compared to other electronics exporters. Its electronic exports to the US were worth $9 billion in April–December FY25, accounting for 15 per cent of total exports.

Also Read: India’s Exports To The US Face Limited Impact From Tariff Hike: SBI Report