Extra from India much less from China: How politics is altering America’s import basket

India has seen a modest rise in its share of US imports in 2025, whereas China’s place in a number of key segments has eroded considerably, in response to knowledge from the US Census Bureau.

The shift in commerce patterns displays ongoing geopolitical tensions, notably insurance policies pursued by the administration of US President Donald Trump, which have impacted China’s dominance and opened up alternatives for international locations like India, Taiwan, and Switzerland.

From January to Could 2025, India’s share of US imports rose to three.1 per cent, up from 2.9 per cent throughout the identical interval final 12 months. In distinction, China’s share noticed a 2.7 proportion level drop. Switzerland emerged as a prime gainer with a 3.3 proportion level improve, adopted by beneficial properties for the European Union and Taiwan. Mexico and Canada additionally registered losses, Occasions Of India reported.

The reconfiguration of import sources is especially seen within the superior expertise merchandise phase, the place China’s share plunged from 14.5 per cent within the first 5 months of 2024 to five.8 per cent within the corresponding interval this 12 months.

Taiwan noticed its share soar from 9.2 per cent to fifteen.8 per cent, whereas Mexico climbed to 14.7 per cent, up 2.3 proportion factors. India, too, made beneficial properties, rising its share from 2.3 per cent to three.5 per cent of US imports on this high-value class.

Officers famous that China’s share within the electronics phase halved to 11 per cent between June 2024 and Could 2025. India’s share in the identical interval grew from 3.5 per cent to 7.2 per cent, buoyed by robust efficiency in cell phone and photo voltaic cell exports. Vietnam and Mexico additionally benefited from the realignment of electronics provide chains.

Textiles provide an identical story. China’s share fell sharply from 27 per cent in June 2024 to 14% by Could 2025. India elevated its share from 9 per cent to 12 per cent in the identical timeframe, with Vietnam capturing 18 per cent, up from 14 per cent. The shift underscores the rising traction of South and Southeast Asian exporters in low-cost, high-volume sectors as soon as dominated by Chinese language corporations.

“India’s attire exports knowledge to the US underscores the extremely price-sensitive nature of the American market. Even marginal worth will increase immediate sourcing shifts, reflecting the extreme competitors out there. On this context, tariff discount underneath the India-US commerce settlement turns into crucial, as it can considerably enhance India’s worth competitiveness and allow deeper market penetration throughout key attire segments and assist us construct on the spectacular progress of 13 per cent registered throughout 2024-25,” mentioned Mithileshwar Thakur, secretary common of Attire Export Promotion Council.

Nonetheless, the beneficial properties should not uniform throughout sectors. India noticed a marginal improve in farm items exports to the US, however its share of gems and jewelry in addition to chemical substances declined. Authorities officers acknowledged that the imposition of a 25 per cent extra tariff on cars and elements has impacted Indian exporters. Merchandise similar to tractors, bikes, and mopeds have seen lowered demand.

“Up to now the shares with shops within the US have helped them meet the demand however everyone seems to be ready for readability on tariffs. Orders shall be primarily based on tariff benefit {that a} nation enjoys. We hope that India and the US can agree on a bundle and we will get deal as demand from American shoppers stays robust,” mentioned Colin Shah, managing director of Kama Jewellery, a big exporter.

The evolving commerce panorama is being intently watched by Indian exporters, who hope that the continuing negotiations with Washington will lead to tariff reduction and assist consolidate current beneficial properties.