There's no looking back for safe-haven gold amid the global trade uncertainties that have emanated from Trump administration's reciprocal tariffs and Chinese counter tariffs.
Trump had imposed reciprocal tariffs on dozens of countries with which the country has a trade deficit. Later, President Trump had decided to paused the tariffs for 90 days, after many countries initiated talks with the US administration for a trade deal.
The US crackdown, imposing 125 per cent import tariffs on China, has unexpectedly created a rare opportunity for India's small manufacturers, offering them a short-term export window, said Global Trade Research Initiative (GTRI) on Wednesday.
As trade tensions between the US and China escalate, the risk of China dumping electronics products in India has increased. Chinese companies are now looking to expand their presence in India by offering discounts to Indian buyers to make up for lost sales in the US.
Commerce Secretary Sunil Barthwal on Tuesday said that the reciprocal tariffs are both a challenge and an opportunity for India, as the government is already negotiating a bilateral trade deal with the US.
In a new report released on April 14, UN Trade and Development (UNCTAD) is amping up calls that the poorest and most vulnerable economies be exempt from "reciprocal tariffs".
China has called on the United States to correct its mistakes by "completely cancelling" its tariffs, describing them as "wrong practice" and urging Washington to return to a "path of mutual respect" towards Beijing, France 24 reported.
Textile importers based in the US are reaching out to Indian exporters, asking them to bear the costs that may emanate from the US tariffs going forward, two industry executives told ANI.
Chinese export hubs like Shanghai and Guangdong are experiencing early disruptions as the US-China tariff war escalates. With shipping halted and factories at a standstill, tensions have intensified following sharp reciprocal tariff hikes announced by both governments this week.
Guidance posted by Customs and Border Protection, which collects duties on imports, indicated roughly 20 products that would be exempted from reciprocal tariffs. The electronic items include smartphones, computers, semiconductor chips and routers.
The US crackdown on low-value Chinese e-commerce shipments has opened a rare and potentially lucrative window for Indian exporters, said GTRI in a report.