English
Amid the escalating 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 step can make many electronics items like TV, fridge, smartphone cheaper in India.
Experts believe that the trade war will make goods coming from China to America expensive, which may reduce the demand. The concern of lack of demand is increasing pressure on Chinese component manufacturers. In such a situation, to increase the demand, these manufacturers are giving discounts to Indian companies.
In simple terms, imposing a 125% tariff on China means that a $100 product made in China will now cost $225 when it reaches the US. As Chinese products become more expensive in the US, their demand will decrease and sales will reduce.
In Washington, White House press secretary Caroline Levitt said after the tariffs were imposed on China: “When you hit America, President Trump will hit you harder.”
The US and China want to find a way to end this trade war at the negotiating table. However, Wendy Cutler, vice president of the Asia Society Policy Institute and a former US trade official, said 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 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 tariff. On April 2, Trump announced reciprocal tariffs on about 100 countries and said, ‘Today is Liberation Day, which America has been waiting for a long time.’
However, on April 9, Donald Trump has postponed the reciprocal tariff 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.
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