US tariffs risk Chinese goods flooding India

Tariffs up to 100% on key items from China take effect today

- ASIT RANJAN MISHRA & SHREYA NANDI

India stares at the risk of an influx of Chinese products as US tariffs on a range of Chinese goods, including solar panels, electric vehicles, lithium-ion batteries, syringes, and steel, are set to take effect from September 27.

With higher tariffs reducing China's access to the US market, there is concern that China may divert its exports to other markets, including India, which could lead to potential dumping of goods. This situation could challenge Indian industries, particularly in sectors where competition with Chinese products is already fierce.

Ajay Srivastava, founder of the Global Trade Research Initiative, said India must act swiftly to protect its industries.

"The government should establish a 'war room' within the commerce department to monitor daily imports of these products. This proactive approach will help detect and prevent China from dumping goods at rock-bottom prices to sustain its factories, shielding India's domestic market from unfair competition. Timely intervention is key to ensuring India's manufacturing sector remains competitive in the face of potential Chinese overcapacity," he added.

The higher tariffs imposed by the Biden administration on Chinese products worth tens of billions of dollars ahead of the November presidential election range from 7.5 per cent to 100 per cent.