Trump has raised tariffs on China to 125 percent. This means that the United States will now impose 125 percent tariffs on goods imported from China. This may cause heavy losses to Chinese companies. India is now the largest market for China after the United States. India is going to benefit from this US tariff decision. Learn how.
Chinese companies will give discounts to India
After the US imposes a tariff, it will be difficult for China to trade in the United States. So that the focus of Chinese companies will now be on India. However, this will only benefit India. According to media reports, Chinese companies will now give India more discounts. Due to Trump’s tariffs, Chinese electronics component manufacturing companies are now preparing to give India more discounts.
Currently, electronic component companies in China are offering 5% discount on total exports to Indian companies. This discount is a great relief for the Indian people. Because, the margin is very high in this segment.
Fridge and smartphones will be cheap
Electronics components from China are used in electronics items such as refrigerator, TV and smartphone. Because of this, it is believed that Indian manufacturers can make a profit from China’s discounts to raise demand. If this happens then the possibility of refrigerators and smartphones will also be cheaper in the future.
India is a big market for China
India is the largest market for China after the United States. China sells everything from smartphones, computers, toys, clothing, video games, electrical items to medical products. America will no longer be a profitable market for it due to tariffs. This simply means that India can benefit from the tariff war between China and the United States.
Also Read: Will India actually be caught in the tariff war between America and China? Know India will benefit or loss?
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