NEW DELHI: US President Joe Biden’s proposal to increase tariffs on various Chinese goods such as electric vehicles, batteries, and medical supplies could potentially be advantageous for Indian exporters, according to a top government official who didn’t want to be named.
“This move might open up new opportunities for Indian businesses to expand their export market and increase their competitiveness in these sectors, benefiting from shifts in global trade dynamics,” he said.
Meanwhile, on reports that India would become dumping ground for Chinese goods post tariff hike by the US on Chinese goods, the official said there is no need to panic as the country has proper mechanism in place to tackle this. India’s approach to this issue is solid, stressing the need for ramping up its capabilities for producing electric vehicles and nurturing the entire EV ecosystem,” the official said. The government is working to attract investments in EV segment, as seen in the recent policy change in March that cut import taxes from 100% to 15% on specific models, given the manufacturer commits $500 million and sets up a factory.
On Tuesday, the White House increased tariffs on Chinese EVs from 25% to 100%, doubled tariffs on solar cells from 25% to 50%, and tripled duties on specific steel and aluminium products.
The US will raise tariffs on non-lithium-ion battery components imported from China from 7.5% to 25%. Additionally, previously untaxed Chinese products like face masks, critical minerals, and ship-to-shore cranes will now face a 25% tariff.