US, China high tariff deal creates opportunities in India: Experts

Recent announcement of US, China to suspend their tariff hikes for 90 days presents both challenges and opportunities for India, according to exporters.

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The two countries have reached an agreement to significantly reduce most of their recent tariffs or import duties for 90 days, as they are in talks to resolve their trade disputes. US Trade representative Jamieson Greer has said the US agreed to reduce its 145 per cent tariff on Chinese goods by 115 percentage points to 30 per cent, while China agreed to cut the rates to 10 per cent.

Federation of Indian Export Organisations (FIEO) President SC Ralhan said the announcement reflects a soft side of the two largest economies.

“While such developments are broadly positive for global trade stability, they present both challenges and opportunities for India," Ralhan said, adding that the reduction in tariffs will likely result in a surge of US-China bilateral trade in high-value segments like electronics, machinery, and chemicals.