US-China Trade War Escalation May Push Beijing to Dump Goods in India: GTRI

New Delhi, May 15 (KNN) The escalating trade war between the United States and China could lead Beijing to dump goods like electric vehicles, batteries and other technology products in the Indian market, according to economic think tank Global Trade Research Initiative (GTRI).

In a statement on Tuesday, GTRI warned that the US announcement of proposed new tariff hikes on Chinese imports including EVs, batteries and various other goods may prompt China to offload these products at discounted prices in markets like India.

"The raising of tariffs on EVs, batteries and many other new technology items by the US may push China to dump these products in other markets including India," GTRI said. 

The think tank called on India's Directorate General of Trade Remedies (DGTR) to remain vigilant against such dumping.

However, GTRI noted the higher US duties on Chinese face masks, syringes, needles, medical gloves and natural graphite present an opportunity for India to ramp up production and boost exports of these in-demand items to the American market.

The latest salvo in the long-running US-China trade battle comes as the United States and European Union take active measures to reduce reliance on China across key sectors. 

While India's exports to China have stagnated at around USD 16.7 billion annually from 2019-2024, imports from China surged 44.7 per cent to USD 101.75 billion over the same period.

"With the routine tariff increases that go beyond WTO commitments and large subsidy programs to ramp up local production, the developed countries are in full protectionist mode," said Ajay Srivastava, co-founder of GTRI. He urged India to develop an active strategy to handle trade with China.

(KNN Bureau)