Opinion: US Tariffs Response to Chinese Trade Manipulation Will Result in Dumping in India

US tariffs imposed by President Donald J Trump in response to China’s trade manipulation practices are set to change global trade dynamics and potentially lead to dumping in countries like India. China’s long-standing exploitative behavior in trade, such as market manipulation, subsidies, and technology theft, has prompted the US to take protective measures, forcing a global realignment of trade flows. This shift in trade patterns could result in an influx of dumped goods not just from China but also from other nations into India’s markets.

Countries like Brazil and India have historically utilized tariffs for various reasons, including protecting domestic industries and balancing trade deficits. India’s high tariffs on passenger vehicles, introduced to prevent cheap imports from other countries, have sheltered the local market but hindered American automobile penetration into the country due to consumer perceptions. Similarly, Brazil’s tariffs on ethanol aim to safeguard its biofuel sector and promote national energy security.

China’s trade manipulations have not only created trade imbalances but have also led to intellectual property violations and forced technology transfers, souring global trade relations. By exploiting World Trade Organization rules, China heavily subsidizes its industries, dumps products at low prices, and demands technology transfers through joint ventures with multinational companies. These unethical practices have enabled Chinese firms to copy patented technologies, replicate designs, and infringe upon intellectual property rights of foreign companies, leading to legal challenges and trade sanctions.

Through state control, preferential financing, and currency manipulation, China has built a dominant export-centric manufacturing sector that undercuts global competition. This aggressive approach has resulted in significant job losses and economic disruptions in developed nations, prompting the US to impose protective tariffs. The Trump administration justifies these tariffs as vital for rebuilding America’s industrial base, creating jobs, and reducing import dependency. By reintroducing manufacturing jobs lost in recent years, the US aims to boost domestic production and limit reliance on imports, ultimately stimulating economic growth.

Former Treasury Secretary Janet Yellen’s statement on tariffs not significantly raising prices during economic discussions needs a contextual understanding. Yellen’s assertion that tariffs targeting unfair trade practices have minimal long-term effects on consumer prices acknowledges that these measures prompt adjustments in domestic production and consumption patterns. While Trump’s tariffs aim to address trade imbalances and support domestic industries, their impact on global trade dynamics remains a subject of debate.

In conclusion, the US tariffs introduced in reaction to Chinese trade manipulation practices are expected to reshape global trade patterns and potentially lead to dumping in emerging markets like India. These protective measures aim to address unfair trade practices, protect domestic industries, and stimulate job growth. However, the long-term effects of these tariffs on global trade relationships and market dynamics are yet to be fully understood. India and other countries must brace themselves for potential dumping activities resulting from the redirection of Chinese exports to alternate markets.