New Delhi [India], February 4 : The trade war between the US and China is going to benefit India, government sources told ANI.
According to government sources, India is not going to be immune from higher tariffs. There may be some products from India on which the US might take some action but despite this India's exports to US will increase.
Trump, who recently took office, imposed tariffs on goods imported from China, Mexico, and Canada over the weekend. Later on Monday, the US President postponed the tariffs on Mexico and Canada by a month under ongoing negotiation on terms.
The new additional 10 per cent Tariff on imports from China is made effective from Tuesday. China retaliated and imposed 15 per cent tariff on coal and LNG and 10 per cent on crude imports from US.
But Sources toldthat irrespective of what is happening to India in the future, India is likely to gain out of this US and China trade war.
"We have discussed this with Indian exporters also and got positive feedback about the mood and the sentiment about the export orders they are looking significant rise in export value," one of the sources said.
The government official toldthat India had benefitted during the trade war between the US and China in the previous regime of Donald Trump's presidency.
"Then, our exports to US was around USD 57 billion. It went up to USD 73 billion. If you see historically, India's exports to the US, during the 1-2 years of the trade war time, India saw a significant jump in our exports to the US," one of the sources said.
After the US government announced a 10 per cent tariff on all Chinese goods exported to America, China too imposed additional tariffs on various US goods, including a 15 per cent tariff on coal and liquefied natural gas, and a 10 per cent tariff on crude oil starting from February 10.
China further said that a 15 per cent tariff will be imposed on coal and liquefied natural gas. A 10 per cent tariff will be imposed on crude oil, agricultural machinery, large-displacement cars and pickup trucks.
China's decision comes as retaliatory action after Donald Trump imposed a 10 per cent tariff on goods from China, citing concerns over illegal immigration and the smuggling of drugs, including fentanyl.
Earlier on February 2, China's Commerce and Finance ministries had denounced Trump's decision to impose tariffs and said that the country would challenge the decision before the World Trade Organization and take unspecified "countermeasures". The Ministry of Commerce said the tariff "seriously violates" international trade rules, urging the US to "engage in frank dialogue and strengthen cooperation".
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor