Higher U.S. Tariffs On China Could Benefit Indian Medical, Industrial Exports

(MENAFN- KNN India) New Delhi, May 16 (KNN) The Biden administration has announced plans to levy substantially higher tariffs on a range of Chinese products, including electric vehicles
, batteries, medical supplies, and critical minerals.

This move is expected to create potential opportunities for Indian medical and industrial exporters to increase their presence in the U.S. market, according to government
officials and trade experts.

The White House hiked tariffs on Chinese electric vehicles
from 25 per cent to 100 per cent, doubled levies on solar cells from 25 per cent to 50 per cent, and tripled the duty on certain steel and aluminum products from 7.5 per cent or less to 25 per cent. Tariffs on non-lithium-ion battery parts shipped from China to the U.S. will also increase from 7.5 per cent to 25 per cent.

Previously untaxed Chinese items such as face masks, critical minerals, and ship-to-shore cranes will now be subject to a 25 per cent tariff. According to the White House, these new tariffs will impact an estimated USD 18 billion worth of Chinese imports into the United States.

While India is not a leading manufacturer across all affected product categories, the tariff hikes position Indian exporters favourably in sectors where domestic production capacities are robust, stated a senior government
official. These include medical supplies like personal protective equipment, syringes, needles, and gloves.

“India's position as the second-largest producer of PPE kits, masks, syringes, and medical gloves will give us a significant advantage,” stated Ajay Sahai, Director General of the Federation of Indian Export Organisations (FIEO).

However, trade experts caution about the potential for Chinese goods facing higher U.S. duties to be diverted to markets like India at dumping prices.

The U.S. Trade Representative framed the tariff increases as necessary measures to counter unfair Chinese trade practices and curb the flooding of global markets with low-cost Chinese products. However, some analysts suggest the higher duties may violate World Trade Organisation rules by exceeding bound commitments.

The ongoing U.S.-China trade tensions and trend towards economic self-reliance through protectionist policies create new challenges for global supply
chains already grappling with risks and resilience issues.

(KNN Bureau)


KNN India

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