As trade tensions between the US and China grow, Chinese electronic component makers are offering Indian companies discounts of up to 5%, The Economic Times reported on April 10. This price cut could make gadgets like smartphones, TVs, and appliances more affordable for Indian consumers.

To boost demand, Indian electronics makers are likely to pass on some of these savings to buyers, the report added. The recent price cuts by Chinese suppliers come after a sharp rise in US-China trade tensions. On April 2, President Trump imposed heavy tariffs on Chinese goods. China hit back with a 34% tariff on US imports, leading the US to raise its tariffs to 104%, and then to 125% by April 9. Meanwhile, Trump paused new tariffs for countries that didn’t retaliate, which led to a rally in global markets.

Amid this uncertainty, Indian companies could benefit. With Chinese exports to the US slowing down due to high tariffs, Chinese manufacturers now have extra stock and are more willing to offer discounts to buyers like those in India.

“This gives Indian importers a chance to renegotiate prices for components,” Kamal Nandi, head of the appliance business at Godrej Enterprises Group, told The Economic Times.

Avneet Singh Marwah, CEO of Super Plastronics, said the oversupply has caused panic among Chinese manufacturers. “When Indian companies start placing new orders around May-June, some of these discounted prices may be passed on to consumers,” he added.

These developments come shortly after the Indian government approved a ₹22,919 crore Production-Linked Incentive (PLI) scheme for passive electronic components on March 28. The scheme aims to strengthen local manufacturing and reduce reliance on imports.

 

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