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    Home / News / Business News / Smartphones may get cheaper in India—thanks to Trump's China tariffs
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    Smartphones may get cheaper in India—thanks to Trump's China tariffs
    Consumer electronics could become cheaper in India

    Smartphones may get cheaper in India—thanks to Trump's China tariffs

    By Mudit Dube
    Apr 10, 2025
    05:17 pm

    What's the story

    The ongoing trade tensions between the US and China have also prompted Chinese electronic component manufacturers to offer discounts of up to 5% to Indian companies.

    This development could potentially make consumer electronics more affordable in India.

    Indian electronics manufacturers are reportedly considering passing on some of these cost savings to consumers in a bid to stimulate demand for their products.

    Tariff escalation

    Trade tensions escalate, impacting global markets

    The US-China trade conflict has intensified of late, with President Donald Trump imposing hefty reciprocal tariffs on Chinese imports on April 2.

    China retaliated by imposing a 34% tariff on American goods. This led the US to raise its tariffs to 104%, and then to 125% on April 9.

    Barring China, Trump has announced a 90-day pause on tariffs for non-retaliating countries, triggering a global market rally.

    Advantage for India

    Indian firms could benefit from US-China trade tensions

    Indian firms can benefit from these developments as Chinese exports to the US are under pressure due to high tariffs.

    This has led to surplus inventory for Chinese manufacturers, making them more amenable to price negotiations.

    Kamal Nandi, head of the appliance business at Godrej Enterprises Group, said that "this opens up opportunities for Indian importers to renegotiate component prices."

    Market reaction

    Oversupply causing panic among Chinese firms

    Avneet Singh Marwah, CEO of Super Plastronics, revealed that the oversupply due to high tariffs has sent Chinese firms into a panic.

    He said "as Indian companies place fresh orders starting May-June, some of the negotiated discounts are likely to be passed on to consumers."

    This could potentially mean lower prices of consumer electronics in India.

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