US-China Trade Spat Might Just Be India’s Big Break in Tech Manufacturing
India continues to make progress as a desirable tech manufacturing destination for global tech companies.
US-China Trade Spat Might Just Be India’s Big Break in Tech Manufacturing
The tariff exemptions that were announced before the weekend have been cancelled. President Donald Trump confirmed via Truth Social that American products will not receive tariff exemptions. According to Trump's statements everyone is still responsible for compliance because the government plans to examine both semiconductors and the entire electronics supply chain during the forthcoming National Security Tariff Investigations. The new tariffs will take effect next week but currently semiconductors as well as computers and smartphones from China remain under a temporary 20% tariff which exceeds the standard rate of 10%.
Because of Trump's habit to change targets frequently (observed again this morning), it becomes difficult to grasp a lasting strategic direction. US Commerce Secretary Howard Lutnick described an urgent requirement in his media statement that these products should be manufactured in America. The narrative and details could potentially shift in the near future. This situation creates unanswered questions about how these developments might change US-China trade dynamics and require big tech companies to realign their strategies while leaving India with significant stakes.
Prabhu Ram from Cyber Media Research's industry intelligence group explained that the current tariff structure will provide essential relief to the global technology sector by reducing economic pressure on consumer electronics along with semiconductors and hardware components.
Apple has been caught in the crossfire which also affected the entire chip and hardware sectors. The removal of tariffs on smartphones and chips becomes especially crucial when analyzed in the context of China tariffs. Ram explained that while immediate issues are handled, persistent doubts about US-China trade relations continue.
India can leverage its vast population to build a big consumer market while improving iPhone manufacturing in India capabilities and supply chain position through workforce up-skilling.
