US tariffs: Indian electronics exports now 20% cheaper than China's
What's the story
Recently, the US revised its import tax policy, exempting several electronics from additional duties.
The move has given India and Vietnam a 20% tariff advantage over China for products like smartphones, tablets, laptops, and other electronic items.
Now, as part of this change, iPhones and other electronics exported from India to the US will be more affordable than those shipped from China.
Tariff details
ICEA confirms tariff exemption for Indian electronics
The India Cellular and Electronics Association (ICEA) has confirmed the tariff exemption for Indian electronics.
"China still faces a 20% tariff on iPhones, laptops, tablets, and watches. Only reciprocal tariff has been removed for China," ICEA Chairman Pankaj Mohindroo said.
He further clarified that India enjoys zero tariffs on iPhones as well as all smartphones, laptops, and tablets exported to the US.
Trade boost
Impact of tariff exemption on Apple's export operations
The policy shift is likely to greatly benefit Apple's export operations from India, where mobile phone exports have already witnessed a major surge.
In 2024-25, mobile phone exports from India crossed ₹2 lakh crore, a whopping 55% increase from the previous year.
Union Minister Ashwini Vaishnaw said iPhones alone accounted for ₹1.5 lakh crore of these exports.
Expert opinions
Industry experts weigh in on US tariff exemption
Industry experts see the US tariff exemption as a tactical shift, not a major policy change.
Ashok Chandak, President of the India Electronics and Semiconductor Association (IESA), said, "Continued underlying tensions and uncertainties may prompt global players to diversify their manufacturing base — creating a timely opportunity for India to emerge as a preferred alternative."
He stressed that despite challenges, India's long-term opportunities in this sector remain strong.
Strategic planning
Analysts suggest long-term strategy post tariff exemption
Industry analysts believe that the US tariff exclusions will lead global investors to formulate long-term strategies for stability in business and investments.
"It is not easy to build such an intricate value chain overnight, even for the US," said Faisal Kawoosa, Chief Analyst and Co-Founder of Techarc.
"Our strengths have prevailed showing the resilience we have built over these years," Kawoosa added.