Kathmandu. Chinese traders and multinational companies are looking for an alternative route amid concerns that US President Donald Trump’s push to a higher level in import tariffs could have a significant impact on export trade. They are studying the possibility of continuing exports through neighbouring countries, including India, which have imposed relatively low taxes.
The U.S. government has imposed a 145 percent tariff on Imports of Chinese goods to reduce the trade deficit. Similarly, only 26 percent duty has been imposed on import of Indian products.
Chinese traders have started moving ahead with the option of cooperation in exports through Indian partners as the tariffs on the export of Indian goods are relatively low. According to international trade experts, Chinese traders plan to export semi-finished or fully prepared goods to the Indian market and from there to the US as goods produced in India again.
With the decline in the availability of Chinese goods in the US market, there is a possibility that big brand companies can now import into the Indian market to avoid losing their customers in the US market.
The world’s largest trade fair, Can’t Fair, was held in Guangzhou, China. The second phase of the fair concluded on April 27. Now the next phase will start again on May 5. Ajay Sahai, director general of the Federation of Indian Export Organisations, said that many companies had approached Indian companies at chinese fairs to export goods to the United States. They are ready to share profits with Indian companies to continue exporting Chinese products.
Most products shipped from China to the United States will now attract a customs duty of more than 145 percent. However, only 10 percent customs duty will be levied on hand-held appliances, daily use items, small appliances, etc. on the export of goods from India to the United States.
Various restrictions have been imposed on Chinese investment in India. This situation arose especially after the border dispute of 2020. As a result, joint companies went ahead to set up factories in India or export products from India to the Us. So at The Can’t Fair, manufacturing companies requested to export their products to the United States of America or co-brand Indian company manufacturing.
Several U.S. companies are exploring options to reduce their dependence on China. For that, they are planning to reduce production imports from China and manufacture in India. The mobile manufacturing company, Apple Inc., has also adopted this approach. However, analysts believe that India has yet to demonstrate its ability to seize this opportunity.
