Think different: Consider a smartphone tariff cut to sustain an Apple-led export boom
1 month ago

Think different: Consider a smartphone tariff cut to sustain an Apple-led export boom

Live Mint  

With US President Donald Trump harping on import barriers like ‘reciprocal tariffs’ to protect factory jobs at home, Apple Inc has responded with a plan to invest $500 billion and create 20,000 jobs in America over the next four years. This move, announced after CEO Tim Cook met Trump in the Oval Office, echoes what Apple did during the latter’s earlier term, when it got tariff relief on iPhones shipped from China in lieu of local job creation. Should a trade policy reset by America impact manufacturers in India, among the hard hit might be Samsung, Chinese players with local factories and Apple’s trio of phone-makers: Foxconn’s Indian business, Tata Electronics and Pegatron’s local unit, in which Tata took a 60% stake recently. Indian import duties on some smartphone inputs are to be cut, as India’s latest budget outlined, but in case US tariff reciprocity kicks in, we should consider a big duty cut on the assembled product.

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