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The recent US-China tariff détente sparked by high-profile negotiations between President Trump and President Xi marks a potential turning point that promises rippling effects across the global economic landscape, India included. In October 2025, the United States announced a cut in tariffs on Chinese goods from 57% to 47%, alongside withdrawals of certain fentanyl-linked duties and renewed Chinese commitments on critical rare earth exports and agricultural purchases.

Impact on India’s Export Dynamics

For India, several direct and indirect consequences arise. While the US tariff reduction on China could reintroduce competitive Chinese products to the American market, making the export race tougher for Indian manufacturers, Indi

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