India Emerges Victorious in US Tariff Row

India stands to gain economically in the wake of US tariff hikes, as its exporters are in a stronger position compared to competitors. While exploring new trade agreements and markets, India aims to protect key sectors like dairy and capitalize on opportunities arising from the US-China trade war.

India has emerged as a prominent beneficiary in the wake of recent US tariff hikes, placing its exporters in a stronger position relative to competitors facing higher import duties, according to sources on Saturday.

Marine and other potentially affected sectors are advised to explore new markets like the European Union to boost their exports.

India has actively protected its dairy sector in free trade agreements and aims to safeguard it further, while the impact of potential US tariffs on pharmaceuticals will be minimal, sources added.

A US-India bilateral trade agreement offers mutual reduction of import duties, enhancing trade opportunities.

The United States currently imposes a 26% import duty on India, significantly lower than tariffs on China, Vietnam, and others. With ongoing trade tensions, Indian exporters see potential in the US-China trade war, while the government assures measures to prevent dumping.

Trade officials maintain dialogue with exporters, emphasizing patience in trade negotiations. The demand slowdown in the US due to tariffs is expected to be modest, with potential benefits from tax cuts.

Shrimp exports might face challenges, given Ecuador's lower tariff rates, but efforts are underway to expand into European markets.

(With inputs from agencies.)