US-China trade thaw threatens India’s supply chain gains

US-China trade truce narrows tariff gap, threatening India’s supply chain gains and export momentum, warn Indian trade experts and analysts.

A drone view shows shipping containers from China at the Port of Los Angeles, in San Pedro, California, U.S., May 1, 2025. / REUTERS/Mike Blake/File Photo

A newly announced 90-day trade truce between the United States and China, effective May 14, while easing global trade tensions, presents a significant risk to India's ambitions of becoming a major export hub, according to Indian trade experts.

The agreement, reached after high-level discussions in Geneva, will see Washington roll back tariffs on Chinese goods, reducing the overall rate from 106 percent to around 40 percent. Beijing will reciprocate by lowering tariffs on U.S. imports from 145 percent to approximately 25 percent and dismantling non-tariff barriers.

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