Walmart announced on Thursday it will triple exports of goods from India to $10 billion each year by 2027, as a nationwide pivot to other trade partners gains strength amid the continuing U.S.-China trade war.
U.S. goods imports from China fell by a stark 16.2 percent between 2018 and 2019, as the effects of Washington’s aggressive stance towards Beijing takes effect.
Currently, Walmart estimates Chinese suppliers make up 70-80 percent of its U.S. merchandise, according to the Alliance for American Manufacturing.
However, following a ramping up of tariffs placed on exports from China under President Trump, a host of other, predominantly Asian, countries are now seeing a marked increase in trade with the U.S.
The biggest overall beneficiaries, according to a study from the United Nations Conference on Trade and Development that examines the extent of trade diversion from the trade wars, are: Taiwan, Mexico, the EU, Vietnam, Japan, Canada, Korea, and India.
A report by Moody’s uncovered comparable effects, and makes particular note of Chinese soybean purchasers turning instead to Brazilian soy farmers.
Meanwhile, trade with India looks only set to increase, with the imminent arrival of Joe Biden‘s new administration, say experts.
U.S. goods and services trade with India totaled an estimated $146.1 billion in 2019, with exports making up $58.6 billion of that total, and imports $87.4 billion. This was up 6.3 percent ($3.4 billion) from 2018, and up 172.6 percent from 2009, according to the Office of the United States Trade Representatives.
India is currently the U.S.’s ninth largest goods trading partner, with $92.0 billion in total two-way goods trade during 2019.