Vietnam can face stiff competition for US exports in nearly 10 percent of items exported to the US: MC Analysis

India may benefit from reciprocal tariffs owing to lower levies from Washington than peers

The imposition of reciprocal tariffs is likely to hurt India in some sectors, but is also expected to unrequited gains in many as it challenges its peers in Asian markets who have been subject of even higher levies.

A Moneycontrol analysis shows that Vietnam will likely face stiff competition from India for its US exports, as India can challenge the country in 123 of the 1227 categories where both countries were among America’s top 10 exporters.

While Vietnam exported more to the US than India in 292 categories, in 123 of these India was giving the southeast Asian nation a fight.

In the case of carton, boxes and bags, India was fifth largest exporter to the US, whereas Vietnam was fourth.

The US President on April 3 imposed a levy of 44 percent on Vietnamese exports headed to American soil, compared with 27 percent duty levied on India.

While China attracted a 34 percent levy, over and above the 20 percent that already exists for some goods, it would be tough to give competition to the East Asian powerhouse.

Of the 842 categories where Beijing was ahead of Delhi in exports, just 162 had both countries figuring in the top 10 exporter list.

Even among these the difference in exports between the nations was manifold.

For instance, in the case of wheeled toys like tricycles, scooters, China’s exports at $14.4 billion were nearly 12 times that of India at $122.6 million. China was ranked first, while India ranked eighth in the category.

However, Bangladesh and Sri Lanka, which face 37 percent and 44 percent levy may have a tough time ahead.

Bangladesh and India were both top exporters to the US in 22 items, most of which were related to textiles. Bangladesh was among the top exporter to the US in 27 categories.

Sri Lanka, which was among the US’ top exporter in 20 categories, is expected to face tough competition from India in nine where India was also among America’s top 10 exporters.

BRICS peer South Africa would also find competition in 21 of 52 items where it was ahead of India, but both countries figured among the US’ top 10 exporters.

South African exports will be taxed 31 percent by the US.