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Prices of electric vehicles (EVs), wind turbines, and semiconductor parts are expected to rise following the fresh trade escalation between the United States and China, according to a report by the Global Trade Research Initiative (GTRI).
The United States has announced an additional 100% tariff on Chinese goods, effective November 1, 2025, which will raise the overall tariff rate on Chinese imports to approximately 130%. The announcement, made by President Donald Trump on October 10, through a Truth Social post, marks the sharpest escalation in US-China trade tensions since the original tariff war began in 2018. GTRI stated "The impact will be felt quickly. Prices of EVs, wind turbines, and semiconductor parts are expected to rise, while the U.S. will try to "friend-shore" its mineral supply chains to Australia, Vietnam, and Canada. China, meanwhile, is likely to redirect supplies toward its non-Western partners to strengthen alternative industrial networks". U.S. President Donald Trump has announced an additional 100% tariff on all Chinese imports, effective November 1, 2025. This is in addition to existing tariffs and comes in response to new export controls on rare earth minerals imposed by China, indispensable for US defence, electric vehicles, and clean-energy industries. The GTRI report also noted that, given the strategic importance of rare earths to US industries, Washington may soon have little choice but to reach a new deal with Beijing. Unlike the US, which often acts before weighing economic consequences, China appears more deliberate and better prepared. The report highlighted that America still depends heavily on China for electronics, textiles, footwear, white goods, and solar panels, leaving it exposed to retaliation. As prices surge once the new tariffs take effect, President Trump could struggle to contain inflation and production costs. His tough-on-China strategy risks backfiring--hurting US consumers and undermining his broader economic agenda. It stated, "As prices surge once the new tariffs take effect, President Trump could struggle to contain inflation and production costs." For India, the report stated that no deal with the US is ever final. The much-publicised US-China "Phase One" trade deal of 2025, which capped US tariffs at 30 per cent and China's at 10 per cent, has already been overtaken by the new 100 per cent duty order. GTRI suggested that India must negotiate carefully and on equal terms, ensuring reciprocity and preserving strategic autonomy. It added that rather than relying on shifting U.S. promises, New Delhi should focus on building self-reliance in critical technologies and minerals. GTRI noted that this will help insulate the economy from future trade shocks while allowing India to leverage its neutral position to strengthen ties with both Western and BRICS economies. (ANI)
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