US tariff jitters push Indian electronics makers to explore new markets: Report

According to industry estimates, the value of electronics currently exempt from U.S. tariffs is around $50 billion.

US President Donald Trump's latest tariff measures are casting uncertainty over India’s electronics manufacturing sector. Companies are reportedly reconsidering their expansion plans, exploring new markets, and reassessing export strategies.

While high-value products such as smartphones, laptops, and certain telecom components remain temporarily exempt, the prospect of sweeping 50 percent duties is eroding India’s pricing advantage over China.

Chennai-based Munoth Industries, a producer of lithium-ion cells for power banks, recently signed an agreement to supply US electronics company Anker with up to one million cells per month.

These exports, according to the company, yield margins nearly double those in the domestic market, it has been learnt from an Economic Times report.

Notably, currently, lithium cells are exempt from the tariffs.

However, Vice-Chairman Jaswant Munoth, cited in the above-discussed report, warns that any change in this policy could prompt the US business to shift to other suppliers. This will, in turn, impact the company’s revenue projections.

It should be noted that about 25 percent of Munoth’s production capacity is earmarked for the US market.

Dixon Technologies, one of India’s largest contract manufacturers, had anticipated significant growth in mobile phone exports to the US by fiscal 2027, particularly for its client Motorola, further states the report. With Washington anticipated to announce tariff decisions on semiconductor-based goods later this month, the company is, however, now in a wait-and-watch approach, reportedly.

In addition, the tariff uncertainty coincides with the ongoing Section 232 review by the Trump administration, which covers electronics, including smartphones, laptops, and semiconductors.

As per a Moneycontrol report, the review could conclude within two weeks, and current exemptions remain in place.

According to industry estimates, the value of electronics currently exempt from U.S. tariffs is around $50 billion.

However, 14 product categories, including battery chargers, electric inverters, and transformer parts, already face the full 50 percent duty.

As per analysts cited in the report, the dispute could hit short-term revenues and slow India’s efforts to position itself as a global electronics manufacturing hub.

Manufacturers are now weighing options to diversify exports to Europe, Southeast Asia, and the Middle East to reduce reliance on the U.S. market.