Amid concerns on the likely impact of the tariff war, triggered by US president Donald Trump’s decision to impose high tariffs on China, Mexico and Canada, on the Indian economy, several experts are predicting collateral gains.

The Trump administration is imposing 25 per cent tariffs on Mexico and Canada with immediate effect.

The US has also doubled the tariff on all Chinese imports to 20 per cent.

“This can help Indian exporters in sectors such as agriculture, engineering, machine tools, garments, textiles, chemicals and leather,” president-designate of the Federation of Indian Export Organisations (FIEO) S.C. Ralhan was quoted in a PTI report.

As the tariffs would make exports from China, Mexico and Canada to the US dearer, Indian exporters can gain by tapping into these opportunities, he added.

The escalation in the trade war, according to economic think tank GTRI, also opens up the opportunity to attract investments from American companies, which will give a big push to the manufacturing sector in the country.

Regulatory burden

The fact that the government is gearing up to make India a beneficiary from the trade war was clear on Tuesday when finance minister Nirmala Sitharaman reiterated the commitment to reduce regulatory burdens, ensure trust-based governance and take steps to make the country a “seamless, export-friendly” economy.

A robust manufacturing sector free from unnecessary regulatory bottlenecks will further attract both domestic and foreign investments, driving economic growth, positioning India as a trusted global player, Sitharaman said while addressing a
post-budget webinar on ‘MSMEs as engine of growth, manufacturing, exports, regulatory, investment and EoDB Reforms’.

The webinar was attended by key officials from various government departments, financial sector regulators, financial institutions, industry bodies, academia, and state governments.

“Our government remains steadfast in reducing regulatory burdens and enhancing trust-based governance to improve the ease of doing business.... We are taking various steps towards making India a seamless, export-friendly economy,” Sitharaman said.

In her 2025-26 Budget speech, the minister had announced that a high-level committee for regulatory reforms will be set up for a review of all non-financial sector regulations, certifications, licences, and permissions.

“The committee will be expected to make recommendations within a year,” she had said in her Budget speech.