Sino-US Bonding Trade Ties Might Hurt Indian Cotton Exports

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There is a worrisome phase ahead for India’s cotton exports in wake of China planning to retract from imposing 25% tariff on US cotton by the advent of March. It’s a bit of bad news emanating from the two countries putting in efforts to resolve their trade war.

The bid to arrive at a compromise has led Chinese importers to renegotiate orders placed to Indian cotton yarn worth USD 400 to 500 million in the recent past.

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The tariff war between US and China had provided Indian cotton exporters a boon period. From previous June to September the US had imposed high custom duties on Chinese goods. China responded in equal measure imposing levy on American goods. This resulted in a 32% rise in Indian exports to China. The export figure stood at USD 8.46 billion during the June-November season.

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India benefitted because of the pressure on China to buy from India. This was because of heavy duties China had imposed on American cotton, disclosed a ministry official.

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