‘Dramatic decline…watch out…’: China’s exports to US dip sharply amid Trump trade war; why India needs to be on the guard – OXBIG NEWS NETWORK-OxBig News Network

Donald Trump tariff impact: China has increased its exports to countries like India amidst the ongoing trade issues with the US. According to a Global Trade Research Initiative (GTRI) report, China has expanded its exports to India, European Union (EU), and the Association of Southeast Asian Nations (ASEAN) during the ongoing tariff dispute with the United States.The analysis reveals a notable transformation in China’s export patterns for May 2025, showing a considerable reduction in goods sent to the United States.This trade reorientation demonstrates the swift adjustment of global supply networks amidst increasing geopolitical and economic strains. The report cautioned nations to be vigilant regarding any forceful export strategies that might result in product dumping.The data indicates that whilst China’s total exports increased moderately by 4.6 per cent from $302.1 billion in May 2024 to $316.2 billion in May 2025, its exports to the US decreased substantially by 34.5 per cent, from $44 billion to $28.8 billion in the same timeframe.Also Read | Significant dent? How an escalating Iran-Israel conflict can threaten India’s growth story – explainedThe significant reduction in US trade is being balanced by enhanced exports to other territories. Shipments to the EU increased by 12 per cent to $49.5 billion, to ASEAN by 15 per cent to $58.4 billion, and to India by 12.4 per cent to $11.13 billion.GTRI said, “A dramatic decline in China’s shipments to the US is being partially offset by increased exports to other markets. Countries should watch out for any incidence of export push by dumping”.India’s shifting trade dynamicsThe trade statistics of India also reveal a notable transformation. India’s aggregate merchandise imports showed a slight reduction of 1.8 per cent annually, decreasing from $61.7 billion in May 2024 to $60.6 billion in May 2025, primarily attributed to reduced oil and gold purchases.Excluding petroleum, gold, and diamonds from the calculation, imports demonstrated a 12 per cent increase, rising from $36.8 billion to $41.2 billion.The import expansion was primarily driven by two sectors: electronics witnessed a 27.5 per cent increase to $9.1 billion, whilst machinery and computers registered a 22 per cent growth to $5 billion.Also Read | Big win! China companies now exporting ‘Made in India’ smartphones & electronics to US, West Asia; notable shift for Chinese brandsChina remained a substantial source of these imports, with combined imports from China and Hong Kong increasing by 22.4 per cent to $12 billion from $9.8 billion in the previous year.Regarding exports, India’s deliveries to the US increased by 17.3 per cent to $8.8 billion in May 2025, with smartphones contributing significantly to this increase.These figures indicate the persistent trade tensions between the US and China, which are likely to persist without a tariff agreement.India faces an uncertain global landscape due to escalating conflicts in the Middle East, involving Iran, Israel, Hamas, and the Houthis, potentially affecting crucial shipping routes and oil supplies.In response to these global changes, the report suggests that India should maintain vigilance, prioritise balanced trade agreements, and enhance business operations to strengthen its trading position.Also Read | Magnet mayhem! Number of Indian companies awaiting licences from China for rare earths doubles; industry supplies hit hard