US President Donald Trump has taken a big step in international trade policy and announced to impose new tariffs on imported goods from many countries. With this announcement, there has been a panic worldwide.
It has been announced how much tariff will be taken on the goods that reach America from other countries including India, China. This new tariff has come into force with immediate effect. Many Asian countries have also been imposed tariffs ranging from 30 percent to 45 percent.
What an effect can American tariff be
Here today we are going to tell you what effect the American tariff rules can be affected on the Indian mobile market, especially in the supply chain, changes can be seen on the cost.
Import component price increases
Many Indian mobile manufacturers use components such as semiconductor, battery and display panels imported from China. America’s tariff may increase China’s manufacturing costs. This will also have a direct impact on the price of components manufactured in India.
Global supply chain can change
Due to the expensive China items, many companies can find new and cheap options. This can benefit countries like India, Vietnam and Taiwan.
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‘Make in India’ will benefit
Make in India initiative can be promoted due to the new tariff rules imposed by the US. This can attract new investors, so that companies will give priority to use the components prepared under Make in India.
Price may affect
If any company finds components expensive due to tariff, then it can also have a direct impact on customers. Prices may increase here. Many electronics items including mobiles can be expensive here.
Indian companies will benefit?
If the phones of Chinese companies become expensive due to American tariffs, then Indian companies like Lava can benefit from it. Indian companies can help in controlling prices.
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Indian brand will face trouble in export
When Indian mobile companies export something to America, they may face problems. American policies can prioritize domestic production or put tariffs on Indian products.