Govt fears trade war may trigger import surge of US farm, Chinese factory goods

AMID ESCALATING global trade tensions, the Commerce and Industry Ministry is assessing the risks of significant trade diversion from other countries to India and is particularly concerned about the likely surge in imports of US farm produce and factory goods from China, Vietnam and Indonesia into the country, a government official said

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“A recent assessment highlighted the risk of merchandise dumping into India due to reciprocal tariffs amid global trade tensions. Rising US costs may prompt exporters from countries like China, Vietnam, and Indonesia — all facing US trade deficits — to divert goods to India, potentially triggering import surges. Additionally, Chinese retaliatory tariffs on US goods could further increase the inflow of US agricultural products into India,” the official said.Unlike other countries, China retaliated against US tariffs, which in turn has raised the risk of trade diversions globally. While the US has imposed a cumulative of 145 per cent tariffs on Chinese products apart from electronic items, Chinese tariffs on US items have also surged to a record 125 per cent. Notably, soybean and corn are the top US agri exports to China.