While trade talks present a light of hope, Trump’s 27 per cent smartphone tariff rattles India’s electronics sector, risking Apple’s expansion and global supply chain shifts.
The announcement of new US import tariffs by President Donald Trump has stirred mixed reactions across India’s electronics manufacturing sector. According to a Mint report, some industry leaders remain hopeful that ongoing trade talks will soften the blow, while others warn the move could derail India’s ambitions to become a global manufacturing hub—especially firms like Apple.
The reciprocal tariffs, including a 27 per cent levy on smartphones from India, mark the first time such devices will face duties in the US. Industry data shows iPhones form a major portion of India’s smartphone exports, with at least 15 per cent headed to the US. The new duty could cost Apple over $600 million in taxes.
While companies like Dixon Technologies say their domestic focus cushions them from immediate impact, others stress the need for clarity. Navkendar Singh of IDC warned that uncertainty may prompt Apple to reconsider its manufacturing expansion in India or shift more operations to low-tax regions, such as Brazil.
India has grown into a key assembly base for Apple, with Tata Electronics and Foxconn playing major roles. But the broader concern is that persistent tariffs may force shifts in global supply chains, undermining India’s value-added growth in electronics exports.
Experts also caution that Trump’s move might be temporary, potentially sparking renegotiations. Tarun Pathak of Counterpoint believes the tariffs are intended to bring countries to the table. However, he added that if sustained, they could hurt India’s goal of boosting local revenue through exports.
Meanwhile, HCL co-founder Ajai Chowdhry raised alarms about indirect exports from China being routed through India. He urged caution to avoid India becoming a dumping ground for electronic waste under the guise of trade.
Nevertheless, the ultimate impact will depend on diplomatic negotiations and how long the tariffs remain in place.
