Trump's tariffs on China might just make your smartphone, fridge, TVs cheaper: Here's how

Several Chinese electronic component manufacturers are offering a discount of up to 5 percent to Indian companies amid an escalating trade war with US, a move that could potentially make several electronics items cheaper in India, The Economic Times has reported on April 10.

The Indian electronics manufacturers may pass on some of cost benefits to consumers, with an eye on stimulating demand, the report added.

The US and China are engaged in virtually a trade war without calling it one, after President Trump levied a stiff reciprocal tariffs on April 2, to which China retaliated with a 34 percent tariff on American imports. The US soon hit back, hiking tariff on Chinese imports to a whopping 104 percent, triggering China to hike its further hike tariff on US imports to 84 percent. On April 9, Trump further raised the tariff on Chinese imports to 125 percent, while announcing a pause on tariffs on nations that chose not to retaliate, thus sparking a global relief rally in equities.

With the trade spat between China and US continuing to make investors around the globe jittery, experts believe Indian firms may benefit from the resulting trade disruption. Due to higher tariffs, the prices of Chinese imports are expected to go up in US, possibly resulting in a fall in demand, thus putting Chinese component manufacturers under pressure. This could allow Indian firms to renegotiate import prices as orders from US slow down, Kamal Nandi, head of the appliance business at Godrej Enterprises Group told the publication.