• Source:JND
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Former US President Donald Trump intends to levy an additional charge on electronic products that were previously exempt from tariffs as part of his overall trade policy in case he is re-elected, billionaire businessman Howard Lutnick said in an interview with Reuters. The proposed move would affect a whole range of electronics such as smart phones, personal computers, chips, and other essential inputs, a number of them now brought into the country free of duties or on preferential terms. Lutnick, CEO and Chairman of Cantor Fitzgerald, informed Reuters that Trump proposes to target a "subset of electronics" that have thus far avoided tariff weights under the current US-China trade tensions. The goal, Lutnick said, is to cut America's dependence on foreign tech supply chains, especially those connected to China.

Tariff Implications for India

The proposed levy could trigger ripple effects across global electronics markets, with India among the countries likely to face an indirect fallout. India is a big importer of electronics and components from China and the US. If prices increase in the US because of tariffs, manufacturers might transfer the cost to other markets like India. Indian retailers worry that the action would result in a spike in consumer electronics prices just before the festive season. Items such as iPhones, expensive laptops, and tablets might be priced higher if the cost of production increases.

Also, the Indian IT hardware industry, which imports key components to assemble them, could feel the cost crunch. Organizations that depend on US-based technology companies could experience a ripple effect on prices and timelines. The Indian government, which has been encouraging local manufacturing through the 'Make in India' program, could have to re-strategize its import methods and strengthen domestic manufacturing capabilities to mitigate the effects of such external policy changes.

Also read: Apple Prices Set To Surge After Trump’s Tariff Hike? Here’s How To Get Cheap iPhone In US