Trump Tariffs Spark Panic Among Chinese Electronics Manufacturers

In a dramatic response to the escalating US-China trade war, Chinese electronics component makers are offering unprecedented discounts of up to 5% to Indian companies. This move comes as US President Donald Trump imposes a staggering 125% tariff on Chinese goods, significantly impacting global supply chains.

US export shipments from China are on hold. Indian companies and Chinese part makers are negotiating to lower prices by up to 5% in a bid to maintain trade relations amidst the trade conflict.

Industry Under Pressure

The discounts represent a significant concession in an industry known for its slim profit margins of 4-7%. Indian manufacturers of televisions, refrigerators, and smartphones could see their profits increase by 2-3%, with potential cost benefits passed on to consumers to boost sales.

Chinese imports account for about 75% of all electronics components used in Indian manufacturing, highlighting the sector's vulnerability to international trade disputes.

Future Outlook

With the US-China trade dispute reducing new orders, Chinese manufacturers are facing surplus issues. "There is panic," said Avneet Singh Marwah, CEO of Super Plastronics, noting that US export shipments from China are currently on hold.

Meanwhile, India's push for local manufacturing through production-linked incentives and quality control orders is further pressuring Chinese suppliers, with domestic component manufacturing projected to reach $145-155 billion by 2030.