Amid the growing US-China trade war due to tariffs, many Chinese electronic component manufacturers are offering discounts of up to 5% to Indian companies.
In such a situation, Indian electronics manufacturers can pass on some part of this discount to consumers to increase demand.
This move can make many electronics items like TVs, fridges, smartphones cheaper in India. The Economic Times has published a report on this.
Trade War: Chinese manufacturers worried about reduced demand
Experts believe that the trade war will make goods coming from China to the US expensive, which may lead to a decrease in demand.
The concern of lack of demand is increasing pressure on Chinese component manufacturers. In such a situation, these manufacturers are giving discounts to Indian companies to increase demand.
Tariff Timeline: America Vs China
.April 2, 2025: The US imposed a total tariff of 54% (20% + 34%) on China. China used to impose 67% tariff on America.
.April 4, 2025: China imposed 34% tariff on America in retaliation. Total tariff (67%+34%) increased to 101%.
.April 8, 2025: Donald Trump said that if China does not withdraw the 34% tariff, then he will impose 50% additional tariff.
.April 9, 2025: China refused to withdraw the tariff and the total tariff on it increased to 104% (54%+50%).
.April 9, 2025: In response to the American tariff, China also imposed 50% tariff. Total tariff increased to 151% (101%+50%).
.April 9, 2025: America imposed additional 21% tariff on Chinese imports. Total tariff on China increased to 125%.
Trade War: Increasing tariffs will make Chinese goods expensive in the US
Imposing a 125% tariff on China simply means that a $100 product made in China will now cost $225 in the US. With Chinese goods becoming expensive in the US, their demand will decrease and sales will decrease.
Press Secretary said – If America is attacked, Trump will respond
In Washington, White House Press Secretary Caroline Levitt said after the tariffs imposed on China: “When you attack America, President Trump will attack even more.”
America and China want to find a way to end the trade war
America and China want to find a way to end this trade war on the negotiating table. However, Wendy Cutler, Vice President of the Asia Society Policy Institute and former US trade official, said that this will not be an easy path due to the deadlock in bilateral relations between the two countries. China is not showing interest in bargaining.
Trump had announced tariffs worldwide on April 2
Trump has been saying that if a country imposes high tariffs on American goods, then America will also increase tariffs on goods coming from that country. He called it reciprocal tariffs. On April 2, Trump announced reciprocal tariffs on about 100 countries and said, ‘Today is Liberation Day, for which America was waiting for a long time.’
Tariffs stopped for 90 days, increased to 125% on China
However, on April 9, Donald Trump has postponed the reciprocal tariffs on all countries except China for 90 days. Trump said – China has not shown respect for the global market. That is why I am increasing that tariff to 125%. Hopefully China will soon understand that the days of looting America and other countries are over.
