The United States has imposed a steep 125% tariff on goods imported from China, significantly raising the cost of Chinese products in the US market. This move is part of an ongoing trade war that is starting to spiral, with wider implications for countries like India. For the past few years, tensions between India and China have been rising, particularly along the borders in Ladakh and Arunachal Pradesh. China has reportedly been encroaching Indian territory near the border in Arunachal Pradesh. However, the current US-China trade war has brought unexpected consequences that may benefit India.
Amid this trade conflict, Chinese companies, especially those dealing in electronic components, are reportedly offering steep discounts to Indian firms — up to 5% off on immediate purchases. This move suggests desperation on the part of Chinese manufacturers, who are now trying to find alternative markets as demand in the US plummets.
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As a result, Indian companies could benefit from lower component costs and potentially pass these savings on to consumers. This could lead to a drop in the prices of electronic goods such as TVs, refrigerators, and smartphones in India, according to a report by the Economic Times.
Meanwhile, Chinese goods in the US are set to become significantly more expensive. With the new 125% tariff, a $100 item will now cost $225, making Chinese imports nearly unaffordable for many American buyers. This is expected to cause a sharp drop in demand.
In contrast, US President Donald Trump has suspended tariffs on countries other than China for 90 days, making it clear that China is being singled out. Trump criticised China for disrespecting global trade norms and said the new tariffs are meant to send a strong message: "The days of looting other countries are