China and USA trade war
India has gained approximately $755 million through new export orders from the USA. The USA has ordered mainly ore, metals, and chemicals at the beginning of 2019 because of the trade alteration effects by Washington with China after the tariff war. Due to the continuing USA and China trade war, there has been a vast decline in bilateral trade, expensive prices for consumers. The result of this trade war is both countries have started to procure items from countries that are not tangled in their trade war.
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Trade and Trade Diversion Effects of United States Tariffs on China Study
According to the study- Trade and Trade Diversion Effects of United States Tariffs on China, the trade change has started from the beginning of 2019 resulting in a loss of about $21 billion. The US conflict in China has resulted in other countries playing an active role in the United States trade market. It has resulted in a great trade change effect. In simple words, it has brought exceptional benefits for the European Nation, Mexico, and Taiwan (China’s province).
The study also added that trade diversion remains beneficial to India, Canada, and Korea in small terms but substantially varying between $ 0.9 billion and $ 1.5 billion. The rest of the benefits are mostly enjoyed by the countries in South East Asia.
What are the products India is exporting to the United States?
Due to the USA and China import and export conflict, India has gained by getting $755 million worth of export orders to the United States. India has started to sell more electrical machinery, metals and ore, chemicals, and various other machinery. Moreover, India has also started to focus on other areas of export like transport equipment, apparel, and textile, precision instruments, office machinery, furniture, and agri-food.
About $21 billion out of $35 billion export was changed to other countries. The rest $14 billion is captured or lost by the United States producers. It means the Chinese are experiencing losses of $35 billion due to the conflict with the United States market.
The study has also clarified that the United States has imposed huge tariffs on China and it was affecting both countries. The consumers in the United States have been importing products from China at an expensive price and they were most-affected because of this conflict.