The imposition of customs duties by the US on imports from China, Canada, and Mexico provides huge export opportunities for India to America, exporters say.
The tariffs would affect exports from China, Canada, and Mexico to the US as they would push prices of their goods in the American market, making them less competitive.
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"The move can create opportunities for Indian exports due to the trade diversion effects as US buyers will seek alternative suppliers to avoid higher costs," Federation of Indian Export Organisations Director General Ajay Sahai said.
He said the extent of benefits depends on India's production capacity and competitiveness.
"The sectors which are likely to gain are electrical machinery and components, auto components, mobile, pharma, chemicals, apparel, fabrics," Sahai added.
US President Donald Trump on Saturday signed an order to impose stiff tariffs on imports from Mexico, Canada and China, fulfilling a campaign promise but raising the prospect of increased prices for American consumers.
Trump is declaring an economic emergency to put duties of 10% on all imports from China and 25% on imports from Mexico and Canada—America's largest trading partners—except for a 10% rate on Canadian oil.
During April-November 2024-25, the US was the second largest trading partner of India with $82.52 billion bilateral trade in goods ($52.89 billion worth of exports, $29.63 billion of imports and $23.26 billion trade surplus).
In 2021-24, America was the largest trading partner of India.
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