Trump is constantly criticizing China, which is why tariff bombs are being dropped on China one after the other. Earlier, a 104 percent tax was imposed, which was later increased to 125 percent. This has put pressure on Chinese companies, so Chinese electronic companies are giving up to 5 percent discount on goods to Indian companies.

Trump Tariff impact on China: The tariff war between the US and China has increased the worries of local companies there. They are afraid of not being able to sell their goods. In such a situation, Chinese electronic parts manufacturers have now decided to woo Indian companies. This is the reason why they are ready to sell goods to India at cheaper prices. Chinese companies are giving discounts up to 5%. Due to this, refrigerators, TVs and smartphones and other Chinese electronic items will be available at cheaper rates in India.

China is angry with US President Donald Trump for increasing tariffs on China to 125%. At the same time, the businessmen there have started getting closer to their neighbouring countries in view of future prospects. According to ET's report, since three-fourths of the parts of electronic products in India come from China and the US' imposition of heavy tariffs on China has halted the orders of Chinese companies. In such a situation, they are offering to sell parts to Indian companies at cheaper rates. For this, they are giving a discount of up to 5%. This move may cause losses to Chinese companies, but it will benefit Indian companies and the people here.

Pressure on China, opportunity for India

Three-fourths of the parts of electronic products in India come from China. Since the US imposed a total tariff of 125% on China, the orders of Chinese companies have come to a halt. Due to the turmoil in the global supply chain, Chinese manufacturers are facing the brunt of oversupply. Due to this, Chinese companies are under pressure. Due to the decrease in export orders from the US, prices will be fixed again. In such a situation, Chinese companies will sell electronic parts to India at a cheaper rate. Due to the 5% discount from the companies, the cost of refrigerators, TVs and smartphones in India will be reduced by 2-3%. Due to which customers will be able to get these electronic items at a cheaper price.

The emphasis on self-reliance is increasing in India

According to the GTRI report, India's electronics component imports grew 36.7% to $34.4 billion in FY24, a growth of 118.2% in five years, but now production-linked incentives (PLI), quality control orders (QCO) and increased import duties are boosting local production. The India Cellular and Electronics Association aims to take component manufacturing to $145-155 billion by 2030.

PC:Money9Live