That the world is witnessing a full-scale trade war between China and the United States of America is hardly a secret anymore. The repercussions of the ongoing dispute between two powerful economies are being felt by companies on both sides. Tech companies like
and others are also caught in the crossfire. And now the US president
has ‘ordered’ these companies to do something that may end up benefitting India.
Trump took to Twitter to express some strong opinions about the trade war in a series of tweets. He first started off by saying that the US has “stupidly” lost trillions of dollars to China. “Our Country has lost, stupidly, Trillions of Dollars with China over many years. They have stolen our Intellectual Property at a rate of Hundreds of Billions of Dollars a year, & they want to continue. I won’t let that happen! We don’t need China and, frankly, would be far better off without them.”
He further said that “The vast amounts of money made and stolen by China from the United States, year after year, for decades, will and must STOP. Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing your companies HOME and making your products in the USA.”
Our Country has lost, stupidly, Trillions of Dollars with China over many years. They have stolen our Intellectual… https://t.co/poBcYLSMOj
— Donald J. Trump (@realDonaldTrump) 1566572343000
Now here’s where it could benefit India – especially where Apple is concerned – as Trump has ‘ordered’ companies to look for alternatives to China. For Apple, manufacturing
and other products in India has started to gather momentum. It has been reported that Apple’s made-in-India phones will be sold across Europe and other countries. These include the 2018 models of iPhones – the XS, XS Max and XR. Multiple reports have also suggested that Apple may look to manufacture more in countries like Vietnam and India among others.
Whether Apple, Google and other companies end up looking at other alternatives will depend more on how brutal the trade war gets. US has been imposing higher tariffs on goods imported from China which will affect the prices. Products like smartphones, laptops, headphones and others may get expensive as new rounds of tariffs kick in from September 1.
Interestingly, in this round of tariffs, the iPhone may have been spared. Apple CEO Tim Cook met with the US president last week and Trump said that tariffs would end up helping Apple’s rivals like Samsung. Trump did say that he found Cook’s arguments “compelling” and that the Apple CEO is a “great executive” who the president would like to “help in the short-term.”
Now with Trump ‘ordering’ companies to look for alternatives, it may bring some good news for India.