Trump's tariff exemptions boost EMS stocks; Dixon, Kaynes Tech, PG Electroplast rally up to 10%

Shares of electronics manufacturing companies surged on April 15 with Dixon, Kaynes Tech and PG Electroplast leading the gains. 

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26 Aug, 2025 12:21

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Shares of electronics manufacturing services companies surged on Tuesday, tracking broad-based buying as investors sentiment became buoyant after US President Donald Trump relaxed some of the tariffs on electronics for now.

US President Donald Trump on Saturday (India time) said he was temporarily exempting smartphones, computers and other electronics from his tariffs. However, he clarified a day later that the items are "just moving to a different tariff bucket". He also indicated that new duties on imported semiconductors could be announced later this week.

Meanwhile, Dixon, Kaynes Tech, PG Electroplast among other shares of electronic manufacturers took a cue from the temporary relief and jumped as the domestic players are expected to gain the most in the near term as consignments shipped from India to the US will now be 20 percent cheaper than those imported from China.

"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.

India Cellular and Electronics Association represents major smartphone companies and their manufacturers, including Apple, Foxconn, Dixon, etc.

Shares of Kaynes Technology India jumped 9.6 percent to an intraday high of Rs 5,581 per share on the NSE. Later, it pared some of the gains to trade at Rs 5,513.5, up 8.3 percent. The counter opened with a gain of 2.18 percent today. The stock has been gaining for the last two days and is up over 15 percent in the period.

Dixon Technologies stock was up 3.66 percent to Rs 14,825 apiece on the NSE, while shares of PG Electroplast advanced 6.23 percent to Rs 975 per share. Both had been rising for the last two trading sessions.

Amber Enterprises and Syrma SGS Tech rose, 6.12 percent and 4.9 percent, respectively.

Ashok Chandak, President of the India Electronics and Semiconductor Association (IESA) said global tensions and trade uncertainties are likely to encourage electronics brands to spread their manufacturing footprints.

"This presents India with a strategic opportunity to scale its manufacturing capabilities and strengthen its role in the global electronics supply chain, Chandak told news agency PTI. "But to fully tap into this potential, Indian firms must focus on building long-term, competitive advantages," he added.