Mumbai: As a result of the tariff war between the US and China, the possibility of foreign companies setting up manufacturing units in India and increasing exports from India is currently reduced. The decision of the US and China to reduce tariffs on each other’s goods has increased the chances of increasing exports from China again.
It seems that foreign companies working in China, who were closing their units in China and looking towards India, Mexico or Vietnam, will now stop working there and prefer to live in China.
Sources in the Global Trade Research Initiative said that although the tariff difference has decreased, companies that were preparing to go from China elsewhere will be stopped at the moment.
The possibilities that arose for countries other than China have now slowed down due to the tariff war, and it would be appropriate for global companies to import from China and continue manufacturing facilities in China.
Earlier, the US had decided to postpone its tariff war with other countries except China for 90 days, hoping India to increase exports to the US. But now that the tariff war with China has been postponed, India’s expectations have cooled down. When Donald Trump was the President of the United States from 2017 to 2021, India was becoming the sixth largest beneficiary of trade with the United States.
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