The agreement by the US and China to sharply reduce tariffs from the earlier punitive levels may expunge the possibility of any quick gains by Indian exporters from the trade stand-off between the two largest economies. With the US cutting the tariff on Chinese imports to 30% from 145%, companies, who were planning to shift production lines out of China might defer such moves. Also, Chinese firms that have approached the Indian industry to help fulfil the supply commitments to the US buyers on their behalf may rethink that strategy.
Indian exporters were approached by American buyers seeking supplies of a host of items like home textiles, apparel and engineering goods. Such orders might now dry up as the US buyers could take a cautious approach. The US and China have agreed to temporarily reduce the implausibly high tariffs, said a report. Source: Exim News Service: New Delhi, May 13
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