New Delhi: Televisions, refrigerators, smartphones, and other electronic devices may soon become cheaper. The primary reason behind this is the ongoing trade war between China and the United States. Due to the tariff conflict, Chinese electronics manufacturers are worried. As a result of this economic tension between the world’s two largest economies, several Chinese electronics makers are offering up to a 5% discount to Indian companies.
In this situation, Indian electronics manufacturers might pass on a portion of this discount to consumers to boost demand. This move could lead to reduced prices for various electronics such as TVs, fridges, and smartphones in India. Notably, nearly one-third of the parts used in electronics products manufactured in India are imported from China. To meet production requirements for 2–3 months, Indian companies usually stockpile raw materials in advance. By May-June, companies are expected to place new orders. Hence, China is trying to attract Indian manufacturers through discounts.
According to the GT-RI report, India’s electronics imports rose by 36.7% in 2023–24. During this period, India imported electronics worth $34.4 billion, which is 118.2% higher than five years ago. In 2018–19, the import value stood at $15.8 billion.
Kamal Nandi, head of appliances business at Godrej Enterprises Group, said the trade war is making Chinese goods more expensive in the U.S. As a result, demand for “Made in China” products is falling, putting pressure on Chinese manufacturers. To counter this, they are now offering incentives to Indian companies.
Due to the U.S.-China trade war, new orders from the U.S. to Chinese manufacturers have dropped. After the U.S. imposed retaliatory tariffs, global supply chains are being reorganized. To revive demand, China is developing new strategies.
Currently, there is an intense tariff battle between China and the U.S., with both imposing heavy duties on each other’s products. China has imposed an 84% duty on U.S. goods, while the U.S. has levied a 125% tariff on Chinese products. This means a Chinese product worth $100 now costs $225 in the U.S. As Chinese goods become more expensive in the U.S., demand and sales are expected to drop.
Key products exported from China to the U.S. include mobile phones, computers and accessories, electrical and industrial equipment, toys, games and sporting goods, apparel, car parts, household appliances, telecom equipment, furniture, home products, cookware, and cutlery.
In contrast, the U.S. exports items like soybeans, aircraft and parts, pharmaceuticals, semiconductors, industrial machinery, crude oil, LNG, plastic products, new and used cars, and medical devices to China.