Indian exporters feel the trade war between the US and China will increase their share in the US market. The segments that have increased opportunities for Indian exporters include silk, wool, cotton, other vegetable fibers, manmade filaments, manmade stable fibers, floor coverings, non-woven cordage, special woven fabrics, knitted fabrics and coated and industrial fabrics.
The US has imposed an additional tariff of 25 per cent on China. Of the 200 billion dollars of imports from China into the US, textile items comprise just 3.9 billion dollars of the value, but it still provides enough scope to exporters from India. Of these textile products, cotton textiles account for the largest number of tariff lines. In terms of value, the most imported products belong to floor coverings, non-woven cordage and manmade filaments. However, the additional tariff hike does not include garments and made-ups which won’t have an advantage like the other segments.
However, while some countries will see a surge in their exports, negative global effects are likely to dominate because of the unavoidable impact that trade disputes will have on the still fragile global economy. The economic downturn will have an important effect on developing countries. US-China bilateral trade will decline and be replaced by trade originating in other countries.