The trade tensions between the US and China have led Chinese electronic component makers to offer up to 5% discounts to Indian firms, potentially reducing consumer electronics prices in India. Indian manufacturers may pass on some savings to customers to boost product demand.
Recently, the US-China trade conflict intensified as President Trump imposed hefty tariffs on Chinese imports on April 2. In retaliation, China set a 34% tariff on American goods, leading the US to increase tariffs to 125% by April 9. Trump paused tariffs for non-retaliating countries for 90 days, sparking a global market rally.
Indian firms can capitalize on the situation where Chinese exports to the US face high tariffs, resulting in surplus inventory and increased willingness by Chinese manufacturers to negotiate prices. Kamal Nandi from Godrej Enterprises Group highlighted the opportunity for Indian importers to renegotiate component prices.
Avneet Singh Marwah, CEO of Super Plastronics, stated that high tariffs have caused an oversupply, prompting panic among Chinese firms. He mentioned that as Indian companies order from May-June onwards, discounts negotiated may reach consumers, potentially leading to lower consumer electronics prices in India.
Sources News From Various Digital Platforms, Websites, Journalists, And Agencies.
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