Question

Which individuals in the nation might gain from a tariff placed on imported textiles? Which might lose?

Answer 1

The total US import of these textile products from India in 2018 amounted to roughly $1.71 billion, which is 43 percent of its Chinese imports. Cotton fabrics represent the biggest amount of tariff lines out of the total fabric goods. In terms of value, floor coverings, non-woven cordage and man-made filaments are the most imported products

The sections that have increased possibilities for Indian exporters include silk, wool, cotton, other vegetable fibres, man-made filaments, stable man-made fibres, floor coverings, non-woven cordage, unique woven fabrics, knitted fabrics, and industrial and covered textiles.

In India, some analysts had anticipated the export penetration of the country to rise in the US and elsewhere as China loses out. However, an assessment of trade information demonstrates that while China's export basket is more developed and is made up of more finished manufacturing products, India is made up of more raw materials and semi-finished products. Therefore, as the tariff war continues, India is unlikely to benefit substantially on the global market at China's cost.