90-day US tariff pause a crucial window; India must act swiftly: ICEA

The US' 90-day pause on reciprocal tariffs for nations like India opens a vital strategic opportunity for New Delhi to boost initiatives in drawing electronics manufacturing investments, especially from firms looking to expand their production sites away from China, which now faces a 125 percent tariff imposed by the US, according to the industry.

US President Donald Trump has announced a three-month halt on reciprocal tariffs for non-retaliating nations, indicating a surprising reversal after the record-high tariffs he implemented caused a worldwide stock market crash that wiped out trillions of dollars investor wealth and alarmed countries and businesses.

Pankaj Mohindroo, Chairman of ICEA (India Cellular and Electronics Association) said, "This pause creates a critical strategic window for India to accelerate our efforts in attracting electronics manufacturing investments, particularly from companies seeking to diversify their production bases beyond China. ICEA is committed to supporting the government in swiftly facilitating the relocation of these production lines to India.”

He cautioned that postponing the use of "this favorable period" could lead to "missed opportunities", as businesses might choose other locations that provide quicker benefits.

"At the same time, we must continuously strive to enhance our global competitiveness and proactively address structural disabilities," Pankaj said.

Ashok Chandak, the President of India Electronics and Semiconductor Association (IESA), thinks that the short-term tariff relief offers companies and India essential room to stabilize their supply chains and adapt operations, while also giving policymakers a chance to pursue more sustainable trade agreements.

"While this pause opens the door to reassess global trade dynamics, underlying tensions and uncertainty persist due to the existing 10 per cent baseline tariff on most US imports and what comes after 90 days," Chandak said.