India is intensifying its surveillance of incoming shipments amid rising concerns that Chinese goods may flood its market due to the US imposing reciprocal tariffs on major trading partners.

US Tariffs on Chinese Goods

• US Tariff Details: On April 2, US President signed an executive order imposing new reciprocal tariffs, ranging from 10% to 50% on imports from various countries.
• Tariff on China: China faces a 34% tariff, adding to an existing 20% tariff, totaling 54%.
• Impact: These tariffs are expected to exclude China from the American market, creating a supply surplus that could lead to dumping in other countries.

India's Response

• Commerce Department Actions: The Department of Commerce is holding strategic meetings and closely monitoring the import situation.
• Concerns: With rising Chinese imports, experts advocate for proactive measures to prevent potential dumping in India.
• Anti-Dumping Measures: India has a system through the Directorate General of Trade Remedies (DGTR) to prevent dumping.

Trade Statistics and Investigations

• Import and Export Data: India imported $103.7 billion worth of goods from China, marking a 10.4% increase, while exports to China fell by 15.7% to $12.7 billion.
• Key Imports: Computer hardware, electronic components, telecom instruments, and raw plastic materials.
• Current Investigations: Anti-dumping investigations are underway for various Chinese products like chemicals, glass fibers, and cranes.

Potential Risks and Industry Impact

• CareEdge Ratings Report: High reciprocal tariffs by the US could lead to increased dumping in India, impacting its chemical sector negatively.
• Global Market Dynamics: China's position as a low-cost manufacturer poses a threat of increased dumping in other markets due to US tariffs.