Donald Trump’s tariff hit: How Chinese firms are looking at Indian exporters to maintain their US clientele

New Delhi: The enterprise, affected by increasing the American tariff imposed under the Donald Trump administration, is seeking assistance from Indian exporters to maintain its American customers amidst important disruption in global trade.
According to Ajay Sahai, Director General of the Federation of Indian Export Organization (FIEO) reported by Bloomberg, during the recently concluded Canton Fair at Guangzhou (May 5), several Chinese firms contacted Indian companies to help fulfill the US customer orders. Indian firms are expected to receive commissions to facilitate these transactions.
The US has imposed tariffs of up to 145 per cent on sugar exports, while Indian goods currently face 10 per cent levy, determined to increase by 26 per cent in July if President Donald Trump applies mutual tariffs after a 90 -day break.
Earlier, Chinese exporters had installed operations in Vietnam or route the goods to reach the US markets through Thailand. However, Trump’s 46 percent tariff charge on Vietnam has limited these options, potentially opening more opportunities for Indian exporters.
Due to India’s sanctions on Chinese investments, Chinese companies cannot establish operations or use India only as a transit point. Instead, at the Canton Fair, Chinese companies proposed that Indian firms supplies goods under Chinese brands or through co-branding system, Sahai said.
The inquiry came mainly from areas such as hand tools, electronics and home equipment. Sahai said that there is also a possibility of direct interaction between American customers and Indian suppliers, commissioned structures for Chinese firms prescribed during buyer-entrepreneurs.
“Some four to five companies have approached us,” Siddhant Aggarwal, the export officer of OAKY tools at Jalandhar, said, Drop Forge Hammer and Manufacturers of Cold Stamp Machines. “They have a brand name to maintain, so they need to serve their customers.”
India’s growing export opportunities coincide with the Trump administration carrying forward trade discussion. During the recent visit to India, American Vice President JD Vance confirmed the possibilities for a bilateral trade deal, targeted to be completed by autumn.
Meanwhile, the US-China stress on the tariff is high. Beijing has rejected the high levy as “meaningless”, while Trump claims that the conversation is going on. However, China denies any active discussion, repeating the demands to remove unilateral tariffs.
While the American appearance at the beginning of the Canton Fair was relatively low, tariff concerns dominated the discussions. Several Chinese firms facing the 90-day grace period intensified investment in Southeast Asia to bypass US sanctions.
Jalandhar -based Victor Forging, established in 1954, is optimistic about development among developed trade scenario. Managing partner Ashwani Kumar said the company has been approached by both Chinese suppliers and American firms with Chinese operations with sugar operations, seeking options due to disruption of the supply chain. Kumar also revealed a plan to establish two new manufacturing units to meet the growing demand, given that American firms are ready to share technical expertise to help Indian manufacturers expand the capacity.
Meanwhile, in its trade war with the US, China said on Monday that it maintained a righteous situation in its ongoing trade dispute with the United States. The US performed enough 145 percent of its duties on its primary rival, while China retaliated with 125 percent duty on US products.
During a press conference, Senior Chinese Economic Officer, Jhao Chenxin warned that the US trade struggle would have adverse consequences. “We strongly believe that if you are against the world and truth, you will only separate yourself. We can win the future with only traveling with the world and morality.”
According to AFP, Chenxin criticized the US unilateral tasks and a strategy of threats, stating that he “went out of thin air, threatening and returned to his word.”
Additionally, Beijing announced increased measures to protect China’s declining economy from the effects of this confrontation. Chenxin further announced China’s commitment to “continue to the end.”
Read more: China claims that it is on ‘right side of history’ in increasing the trade war with us