Latest News | US Duties on China, Canada, Mexico Provide Export Opportunities for India: Exporters

New Delhi, Feb 3 (PTI) The imposition of customs duties by the US on imports from China, Canada, and Mexico provides huge export opportunities for India to America, exporters say.

The tariffs would affect exports from China, Canada, and Mexico to the US as they would push prices of their goods in the American market, making them less competitive.

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"The move can create opportunities for Indian exports due to the trade diversion effects as US buyers will seek alternative suppliers to avoid higher costs," Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai said.

He said the extent of benefits depends on India's production capacity and competitiveness.

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"The sectors which are likely to gain are electrical machinery and components, auto components, mobile, pharma, chemicals, apparel, fabrics," Sahai added.

US President Donald Trump on Saturday signed an order to impose stiff tariffs on imports from Mexico, Canada and China, fulfilling a campaign promise but raising the prospect of increased prices for American consumers.

Trump is declaring an economic emergency to put duties of 10 per cent on all imports from China and 25 per cent on imports from Mexico and Canada - America's largest trading partners - except for a 10 per cent rate on Canadian oil.

During April-November 2024-25, the US was the second largest trading partner of India with USD 82.52 billion bilateral trade in goods (USD 52.89 billion worth of exports, USD 29.63 billion of imports and USD 23.26 billion trade surplus).

In 2021-24, America was the largest trading partner of India.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)