Indian exports will benefit tremendously if the tariffs proposed by the US on Chinese imports come into effect. US-China bilateral trade will decline and be replaced by trade originating in other countries.

Chemicals and plastics from India will be the top sector benefiting from Chinese tariffs on the US, while on the US side it will be communications and office equipment. India’s exports of machinery are expected to go up by $2.4 billion because of US tariffs, and only $714 million because of China's tariffs.

Motor vehicles and transport equipment may benefit $442 billion from US tariffs and only $22 million from China's. In various other areas, India’s exports are likely to go up $1.9 billion from US tariffs and $222 million because of China's. However, while some countries will see a surge in exports, negative global effects are likely to dominate because of the unavoidable impact that trade disputes will have on the still fragile global economy. The economic downturn will have an important effect on developing countries.

Last year, as the US announced a series of tariffs on imports totaling $250 billion from China, the latter retaliated with tariffs on imports worth $110 billion from the US.