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US tariffs on China: India could get hurt most, says Crisil

 November 28, 2024  Leave a Comment on US tariffs on China: India could get hurt most, says Crisil
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As the US imposes higher tariffs and trade barriers on imports from China, surpluses with the latter could increase the possibility of them being diverted to other countries, including India, which already imports heavily from Beijing, ratings agency Crisil said Thursday.

Stating that the US and China are at the cusp of yet another trade war, it warned that import tariffs and barriers on these goods could hurt India the most.

This assumes significance as both India’s imports from and exports to the US have doubled in the decade gone by while imports from China have doubled but exports to the country have stagnated.

Total merchandise trade with the US touched $120 billion in 2023-24. Trade with China came close to $118 billion — its highest level ever.

“With both these partners, India’s total trade doubled over the last decade and rose 1.4 times over the last five years.

This is where the similarity ends. Beyond this, there is a striking polarity in trade relations,” Crisil said in a report.

India enjoyed a trade surplus of $35.3 billion with the US in FY24. With China, India had a large trade deficit of $85.1 billion, its largest with any partner .

Trade surplus with the US has grown 9.8% on average over the last decade, while trade deficit with China has expanded 11.1%.

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