US President Donald Trump has escalated his economic battle with Beijing, slapping up to 245% in cumulative tariffs on Chinese imports – the most aggressive US trade action in years.
While these tariffs hit China’s key industries hard – including tech, critical minerals, and consumer goods – Trump has paused or minimized duties on most other nations, giving countries like India a rare opportunity to shine.
The latest salvo: An April 15 executive order investigating whether Chinese exports of rare earth metals and critical minerals threaten US national security – an inquiry likely to result in more tariffs. Meanwhile, China has retaliated with own duties on US goods and tightened controls over exports of key materials like gallium, germanium, and rare earths.
Why it matters
- The world’s two largest economies are deep into a tit-for-tat showdown that’s disrupting global supply chains and investor confidence. But in this chaos, India is gaining ground – as a neutral, stable, and scalable manufacturing alternative.
- While Beijing accuses the US of “threatening and blackmailing,” and analysts warn of looming recessionary risks, India is being recast as a rare haven in the storm. From tech giants rerouting production to foreign capital finding firmer footing, the country is emerging as a central figure in a reshaping of global commerce.
- Companies like Apple Inc are already shifting production. The iPhone maker assembled $22 billion worth of iPhones in India in the 12 months ending March, a 60% jump over the previous year, Bloomberg reported. That means 1 in every 5 iPhones is now made in India.
- Apple’s supply chain pivot isn’t just symbolic – it’s operational. In March alone, the company airlifted nearly $2 billion in iPhones from India to the US to preempt Trump’s tariffs, according to Reuters. Customs data shows Foxconn shipped $1.31 billion and Tata Electronics exported $612 million worth of devices.
- India’s low exposure to US trade—just 2.7% of American imports compared to 14% for China—shields it from much of the direct fallout. Read more
Source: Times of India