India gains 755 million USD
Based on inputs by Meeta K
As per study by the UN trade and investment body UNCTAD, US’s tariff war with China has benefitted India .
India has gained about $755 million in additional exports, mainly of chemicals, metals and ore, to the US in the first half of 2019 due to the trade diversion effects of Washington’s tariff war with China.
These trade diversion effects have brought substantial benefits for Taiwan (province of China), Mexico, and the European Union. “Trade diversion benefits to Korea, Canada and India were smaller but still substantial, ranging from $0.9 billion to $1.5 billion,” it said. The remainder of the benefits were largely to the advantage of other South East Asian countries.
India gained $755 million in additional exports by selling more chemicals ($243 million), metals and ore (USD181 million), electrical machinery ($83 million) and various machinery ($68 million) as well as increased exports in areas such as agri-food, furniture, office machinery, precision instruments, textiles and apparel and transport equipment, UNCTAD said.
In 2018, the US administration started implementing a series of trade measures to curtail imports, first targeting specific products (steel, aluminum, solar panels and washing machines) and then specifically targeting imports from China. In the early summer 2018, US and China raised tariffs on about $50 billion worth of each other’s goods. This escalated further in September 2018 when the US introduced an additional 10 per cent to cover $200 billion worth of Chinese imports, to which China retaliated by imposing tariffs on imports from the US worth an additional $60 billion. In June 2019, the US increased the tariffs further, to 25 per cent. China responded by raising the tariffs on a subset of products that were already subject to tariffs. In September 2019, the US imposed 15 per cent tariffs on a large subset of the remaining $300 billion worth of imports from China not yet subject to tariffs. Stay on top of business news with The Economic Times App. Download it Now!