According to a Reuters report, "India has removed import duties on some components key to producing mobile phones, Finance Minister Nirmala Sitharaman announced in the annual budget on Saturday, in a boost for local production efforts and benefiting firms such as and Xiaomi.

India's electronics production has more than doubled in the last six years to $115 billion in 2024, with the country now becoming the world's second-largest mobile phone manufacturer.

The report further notes that these import tax cuts will help India better deal with an otherwise unpredictable year, especially due to Donald Trump's continued tariff threats. Trump tariffs are becoming a disruption in global trade, with the market being left uneasy, but for India, the call to slash import taxes on smartphone parts will also help boost local production, especially looking into the fact that India is steadily evolving into becoming the world's second-largest mobile phone manufacturer.

Trump is currently looking at prioritizing America's local industry, but this latest move by India around import tax is drawing speculations that the South Asian country is taking advantage of the US-China trade war, and trying to increase its own share of global supply chains, says Reuters.

In the short term, it may be a positive outcome for increased US tariffs. However,  In the longer term Trump's lashing out to impose large tariffs on friendly-to-America countries could backfire. Trump recently stated that “Without this massive subsidy, Canada ceases to exist as a viable Country. Harsh but true!." Making friendly nations enemies will only assist the Democratic party in future elections. Canada and other countries that Trump hits with sanctions will retaliate against U.S. companies in many ways including not buying Apple devices.  

Cartoon from Michael de Adder on X.