The export of iPhones, smartphones, tablets, and laptops from India to the US will now be 20 percent cheaper as compared to similar products shipped from China.
The US government on Saturday amended its tariff policy to exempt smartphones, tablets, laptops, and some other electronic devices from the new taxes. As a result, India and Vietnam now enjoy a tariff advantage of 20 per cent over China on these goods, according to the India Cellular and Electronics Association (ICEA).
“China still has 20 per cent of iPhones, laptops, tablets, and watches. Only reciprocal tariff has been removed for China. India has zero tariff on iPhones and all smartphones, laptops and tablets exported to the US. Vietnam also has zero tariff on all Samsung and other smartphones, laptops and tablets exported to the US. So India and Vietnam are similarly placed on tariffs on these products and both enjoy a 20 per cent tariff advantage over China,” ICEA Chairman Pankaj Mohindroo told PTI.
ICEA represents major electronics and smartphone manufacturers including Apple, Foxconn, and Dixon. According to ICEA, mobile phone exports from India have crossed an all-time high of Rs 2 lakh crore in 2024-25, registering a 55 per cent growth over the Rs 1.29 lakh crore recorded in 2023-24, PTI reported.
Apple's iPhone ecosystem in India has become the largest job creator in India and is one of the top exported items from the country.
In a major realignment of its global supply chain, Apple Inc is now manufacturing iPhones worth $22 billion in India, marking a significant shift away from its long-standing production base in China. According to a Bloomberg report, nearly 20 per cent of Apple’s global iPhone output now comes from India — a remarkable leap driven by geopolitical tensions, pandemic-related disruptions, and strategic diversification.
The ramp-up was initiated by severe COVID-19 lockdowns in China that disrupted operations at Apple’s largest plant, compelling the tech giant to reduce its overdependence on the country. A large share of these iPhones are assembled at Foxconn Technology Group’s facility in southern India, with Tata Group’s electronics arm also emerging as a key contributor.
Union minister Ashwini Vaishnaw has said that iPhones alone accounted for Rs 1.5 lakh crore worth of exports in the smartphone segment.
The Trump administration's reciprocal tariff order had earlier created uncertainty for Apple’s production plans in both China and India. However, the latest exemption covers smartphones, laptops, hard drives, flat-panel monitors, and certain semiconductor chips. Equipment used for manufacturing semiconductors remains excluded and will still face high tariffs.
The move can help keep prices down for popular consumer electronics goods that aren't usually made in the US.
Semiconductor and electronics industry body IESA President Ashok Chandak said the recent decision by the Trump administration to exempt smartphones, computers, and other electronics from reciprocal tariffs offers a significant -- albeit possibly a sh...
He said while the move signals a tactical recalibration rather than a shift in broader trade policy, it is nonetheless a welcome development in terms of easing short-term supply chain disruptions, geopolitical tensions and US consumer resentment, PTI reported.
Industry observers see the policy change as a sign for investors to plan long-term. “It is not easy to build such an intricate value chain overnight, even for the US. Our strengths have prevailed showing the resilience we have built over these years. This means business as usual for brands like Apple in India, which will only grow further. At the same time the supply chain has much predictability,” said Techarc Co-Founder and Chief Analyst Faisal Kawoosa.
(With inputs from PTI)
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