India to substitute US in China as Trade War intensifies

The US-China trade war seems to be escalating, which has china and other countries looking for new partners to replace US goods, one of those countries is India. India has released a list of goods that can substitute US goods tariffed by the Chinese.

The list of 40 substitutes includes fresh grapes, cotton linters, flue-cured tobacco and alloy steel seamless boiler. India is aiming to gain a strong market share in these areas. Another goal for India is reducing the deficit with China which stands at $63 billion.

The only the barriers India may face in achieving their goals is the limited market access it has in China, but the Chinese government is looking at fast tracking India especially in areas where it has a clear advantage opening up more of its market as the US leaves.

So long as this trade war stays in place a new trend looks to be coming out of it, China is looking for new partners to replacements the US, for example China has already started increasing trade with Brazil to replace the US supply of soybeans.

Last week’s attempt of finding common ground between the two economic power houses resulted in nothing. China’s trade delegation sent to the US unfortunately seems to have only spurred on the US which is planning a fresh round of tariffs against China soon.


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