India Scores Big Amid Trump’s Tariff Pressure; Exports to China Jump 22%, Chinese Envoy Praises Trade Growth

New Delhi (The Uttam Hindu): While US President Donald Trump continues his tough stance on tariff policies, India has achieved significant success by diversifying its export markets and minimizing the impact of American trade restrictions. Although the 50% US tariffs hit sectors like shrimp and textiles, Indian exporters managed to tap into new opportunities in other countries. Reports indicate that despite the tariff tension, India-China trade relations have strengthened, with Indian exports to China rising by nearly 22% in the first half of fiscal year 2025–26.

India’s Exports to China Reach $8.41 Billion

According to trade data, India’s exports to China increased to $8.41 billion between April and September 2025, compared to $6.90 billion during the same period in 2024 — marking a 22% rise. The demand for Indian products affected by US tariffs, especially shrimp and aluminum, has remained strong in the Chinese market. Several other sectors have also witnessed notable export growth to China.

US Tariffs Hit Shrimp, Aluminum, and Textile Industries

However, the US tariffs have caused heavy losses to certain industries. Global Data reports that the 50% tariff imposed by the US resulted in a 14% decline in India’s air cargo exports to America. The shrimp industry in Andhra Pradesh alone has reportedly suffered losses worth ₹25,000 crore, with nearly half of the shrimp export orders canceled following the tariff hike.

Similarly, the aluminum and textile sectors also faced setbacks. According to a Confederation of Indian Textile Industry (CITI) survey, both orders and revenue in the textile and apparel sectors dropped by about 50% since the tariff increase.

China Welcomes More Indian Goods

China’s Ambassador to India, Xu Feihong, expressed satisfaction over the growing bilateral trade on social media platform X (formerly Twitter). He wrote, “In the first half of FY 2025–26, India’s exports to China rose by 22%. Beijing welcomes more Indian products and is ready to cooperate to mitigate the effects of US tariffs.”

Background: Trump’s 50% Tariff Policy

Under Trump’s tariff policy, the US initially imposed a 25% reciprocal tariff on India. Later, citing India’s oil and defense trade with Russia during the Ukraine conflict, Washington doubled the tariff to 50%, effective August 27, 2025.