US China Trade War: Where is it going to end? Trump Imposes 145% Tariff on Chinese Goods, Can Indian Exporters Fill the Gap

The US China Trade War has reached a critical point. In a surprising move, US President Donald Trump has hiked tariffs on Chinese imports from 125% to a staggering 145%. This is a clear signal that the ongoing tariff war is far from over. At the same time, Trump has offered a 90-day relief period for countries affected by reciprocal tariffs. This has sparked a key question — can Indian exporters step in and seize the opportunity left by China's shrinking presence in the US market?

US China Trade War Intensifies With 145% Tariff on Chinese Goods

As per the White House, the US had earlier raised tariffs on Chinese products to 125%, but Trump’s latest move added an extra 20% penalty — bringing the total tariff to a steep 145%. This additional penalty was imposed due to alleged fentanyl smuggling linked to China.

China responded with a firm stance, making it clear that it will not give in to external pressure and is fully prepared to retaliate. The tone from Beijing signals that the trade war is far from over, with both nations showing no signs of backing down or reaching a compromise.

Donald Trump defended the decision during a recent meeting, acknowledging that while the move may bring short-term costs, his administration believes it will ultimately benefit the US economy and strengthen the country’s global trade position.

Indian Exporters May Gain as Trade War Opens New Doors

As the US imposes steep tariffs on Chinese goods, global companies are rethinking their supply chains. Many businesses that were manufacturing in China are now eyeing India as a strong alternative.

Trade experts say this may be the perfect moment for Indian exporters to shine. Sectors like textiles, pharmaceuticals, electronics, and auto components could particularly benefit if companies shift base to India to avoid US tariffs.

India is already in discussion with the US to ensure its trade interests are safeguarded. If successful, Indian exporters could see more demand from American importers looking to cut ties with Chinese suppliers.

Tariff War May Create Long-Term Opportunities for India

This tariff war between China and the US has created major disruptions in the global supply chain. But for India, it could turn out to be a golden opportunity.

With global players looking for reliable and cost-effective options, India’s stable political climate and skilled labour force make it a favourable destination. Experts believe if the government plays its cards right, India can fill the void left by China in key global sectors.

Global Markets React as US China Trade War Gains Steam

The US China Trade War has rattled markets across the world. US stock markets saw a sharp fall in Thursday’s session. The Dow Jones slipped 2.50%, while the Nasdaq plummeted by 4.31%.

Interestingly, Indian markets opened strong on Friday after Trump announced a 90-day pause on reciprocal tariffs. Sensex was up by 1,170 points (1.58%) at 75,017, and Nifty surged 373 points (1.67%) to 22,772 in early trade.

Midcap and smallcap stocks also saw positive movement, reflecting investor confidence in India’s potential role in the new global trade setup.

In contrast, most Asian markets like Tokyo, Seoul, and Bangkok were trading in the red, showing the ripple effects of the ongoing trade war.