In a relief for Indian electronics manufacturers, the United States has granted a temporary exemption from the 50% reciprocal tariffs on a range of Indian exports, including smartphones, switching and routing equipment, integrated circuits, and semiconductors. This exemption is linked to an ongoing Section 232 national security investigation in the US, which currently permits duty-free imports of these critical electronic products. However, the relief is temporary, and the imposition of future tariffs will depend on the outcome of the investigation.
The Trump administration had earlier announced multiple rounds of reciprocal tariffs of up to 50% on Indian goods, set to take effect from August 27. Earlier this month, President Donald Trump also declared an additional 25% tariff on Indian imports in response to India’s continued purchase of Russian crude oil.
The exemption is expected to benefit major players such as Apple and Samsung, both of which have significantly expanded their manufacturing footprint in India. According to recent data, India became the largest supplier of smartphones to the US in Q2 2025, accounting for 44% of the market share. India has now overtaken China as the leading smartphone exporter to the US. In June 2025, India’s electronics exports to the US surged by 23.5% to $8.3 billion, with mobile phones—particularly iPhones—being the key growth driver.
For the fiscal year 2024–25, India recorded a trade surplus of $8.7 billion in electronics exports to the US, a sharp turnaround from a $0.6 billion deficit in FY17. This growth has been propelled by the Production-Linked Incentive (PLI) scheme and Apple’s increased manufacturing in India. Mobile phone exports alone reached $5.7 billion in FY25, up from $2.2 billion in FY23, with iPhones comprising the bulk of the exports.
Overall, during the April–July 2025 period, India’s total exports to the US rose by 21.64% to $33.53 billion, while imports grew by 12.33% to $17.41 billion.