Saloni Kumari | Apr 5, 2025 |
India Tightens Checks on Chinese Imports After U.S. Tariffs Raise Dumping Fears
With concerns growing over a possible increase in Chinese imports into India—especially after the U.S. announced new reciprocal tariffs on key trading partners—the Indian government has reportedly stepped up scrutiny of goods coming from China.
According to a report, the Department of Commerce, under the leadership of Commerce Secretary Sunil Barthwal, has held multiple internal meetings to put together a detailed action plan.
A source cited in the report mentioned, “The commerce department is staying vigilant. It had already been watching the import situation closely even before the U.S. introduced its new tariffs this Wednesday. The U.S. has been placing additional duties on Chinese imports.”
On April 2, 2025, U.S. President Donald Trump signed an executive order to impose reciprocal tariffs on imports from several countries. These extra duties, ranging from 10% to 50%, are to be implemented in phases. The basic 10% duty took effect on April 5, while country-specific additional duties will kick in from April 9.
China has been hit the hardest, with a steep 34% extra tariff, bringing its total duties on exports to the U.S. up to 54%.
In response, on April 4, 2025, China announced precautions, including a 34% tax on all U.S. imports and restrictions on the export of certain rare earth materials. These steps have intensified the ongoing trade conflict between the two global economic powers.
China also introduced limitations on around 30 U.S. organizations, mainly in the defense sector, adding to earlier penalties on over two dozen American firms linked to Trump’s tariff policy.
China’s Ministry of Finance strongly criticized the U.S. move, calling it a violation of global trade standards and labeling it a case of “one-sided bullying.”
Responding via his social media platform, Truth Social, President Trump claimed that China had “panicked,” saying, “China played it wrong, they panicked — the one thing they cannot afford to do!”
As tensions rise, many fear that China may redirect its goods to other countries like India, raising the risk of product dumping—selling items at very low prices to clear excess stock. Experts are advising India to take a more active perspective to protect local markets.
India has maintained that its anti-dumping systems are powerful and are managed by the Directorate General of Trade Remedies, which enforces trade protection measures.
Data from the Department of Commerce shows that India’s imports from China rose by 10.4%, reaching $103.7 billion between April and February in the FY 2024–25 period. In contrast, exports to China fell by 15.7%, dropping to $12.7 billion over the same timeframe.
Experts now warn that with fewer goods going to the U.S., China might try to sell more to countries like India, raising the risk of dumping—where products are sold at very low prices to clear excess stock. They recommend India to take a more preventive strategy.
India already has anti-dumping rules, managed by the Directorate General of Trade Remedies, which helps protect local industries from unfair trade practices.
India’s imports from China increased by 10.4% ($103.7 billion) from April to February of the current 2024–25 financial year. However, India’s exports to China decreased by 15.7% ($12.7 billion).
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