U.S. Tariffs: Karnataka Seeks Centre's Swift Response

• U.S. tariffs threaten India’s edge over rivals like Vietnam in electronics manufacturing
• Kharge urged the Centre to act, saying states can’t handle global trade fallout alone
• He stressed focusing on the full supply chain, not just big firms like Foxconn or Apple

Karnataka IT Minister Priyank Kharge recently expressed alarm to the US imposing a 25% tariff on Indian exports, as tariffs are the quickest way to destroy India's competitive advantage against newer electronics hubs like Vietnam, and he called on the central government to take immediate and decisive action to protect India's electronics manufacturing ecosystem.

Kharge provided his warnings while Karnataka is ramping up the presence of high-end electronics through major companies like Foxconn and Tata Electronics, he made it clear that the state did not have the ability to respond to a global trade process, but that the Centre must intervene, rethink, and support India’s position in international markets.

He stated, "This requires a lot more deep dive because it has been 24 hours since the US has announced these trade tariffs. But I think this is something that the Government of India seriously needs to look at... If you look at the people whom we are competing at the global scale as a country, it is with Vietnam and China, Indonesia, and we are the highest in Asia...Vietnam is at 20 per cent."

Also Read: Karnataka to Invest Rs 1,000 Cr in Quantum Mission, Build Q-City

He recognized that it is typical for countries like the U.S. to protect their domestic industries under a strong nationalistic agenda such as 'Make America Great Again'. However, he argued that India should fight just as hard for its own interests to protect its jobs, investments, and long term industrial goals.

Kharge also stated that in today's interdependent world economy, borders are becoming less and less important. What matters now are innovation, labor costs, production efficiencies, and far more competitive end-to-end supply chains that drive trade globally.

"So we'll have to wait-and-watch and see before I can comment anything on the entire ecosystem... It's just not about Apple or about Foxconn. It's just not about their OEMs. We are manufacturing on scale for various components across sectors, whether it is smartphones, semiconductors or space tech. And I think we should see this ecosystem as a whole and not for one particular company", he added.

The U.S. tariffs are from an Executive Order called 'Further Modifying the Reciprocal Tariff Rates' by President Donald Trump, establishing duties on exports from almost 70 countries, including India. The remarks by Kharge underline increasing concerns about how protectionist policies could potentially undermine India's growth into electronics and advanced manufacturing sectors.