Electronics giants Apple and Samsung may have found a way to beat US President Donald Trump’s tariff blitz and it runs through India.
While announcing tariffs against US' rivals and allies alike last week, Trump slapped an additional 34 percent duty on Chinese goods, which includes smartphones manufactured by Apple and Samsung. The new duties imposed on Beijing's exports are over and above 20 percent imposed earlier, effectively taking the total tariff to a whopping 54 percent.
To cushion the impact of the duties, the two top phone manufacturers are planning to adopt a make-in-India approach, as Trump has levied a 26 percent tariff on New Delhi’s exports, comparatively lower than its Asian peers including Vietnam and China, the Times of India said on April 7.
Apple, which is the world’s biggest electronics seller, has started ramping up its production in India to export iPhones to the US and has plans to cut its shipments from China, TOI said in its report.
Moneycontrol could not independently verify the report.
It is likely to increase the production of iPhones in India. Currently, Foxconn and the Tata group manufacture iPhones in India.
China will cater to the demands from other markets such as Europe, Latin America and Asia, the newspaper said.
Samsung, which has a manufacturing unit in Noida, is also looking at the issue seriously. Its exports from Vietnam are worth $55 billion and will look at temporary solutions till the South Asian nation negotiates a deal with the US, the report said.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
