NEW DELHI: Indian exports of smartphones, laptops, and tablets to the United States remain unaffected for now, despite US President Donald Trump's recent announcement of a 25% reciprocal tariff on Indian goods. According to reports citing sources, the US had in April 2025 provided a 90-day exemption period on select electronics, allowing Indian exporters to continue shipments without being subject to new tariffs. These exemptions are scheduled to expire on August 14. A review meeting is expected to be held in the US before the deadline to decide on whether to extend the exemptions under Section 232 of US trade law.
Industry experts believe that the tariff development is unlikely to significantly impact India’s mobile manufacturing sector. While China currently faces a 30% tariff on electronics exports to the US, India faces a slightly lower rate of 25%. Vietnam, although subject to a 20% tariff, is not yet a manufacturing base for iPhones, making India and China the key production hubs for Apple.
According to a recent study by Canalys, now part of Omdia, smartphone shipments from India to the US surged 240% year-on-year, now accounting for 44% of all smartphones imported into the American market. This trend reflects Apple’s ongoing strategy to diversify its supply chain by increasing production capacity in India and reducing dependence on Chinese manufacturing.
The shift has significantly altered global trade patterns. China’s share of US smartphone imports dropped from 61% in the second quarter of 2024 to just 25% in the same period of 2025. In contrast, India’s share jumped from 13% to 44% during that time, effectively absorbing much of the production decline from China.
“This likely means iPhones will become more expensive for Americans. Even if India gains more production volume, the cost gap between China and India is narrowing. Since iPhones are not yet manufactured in Vietnam, the main implication is that unless Apple decides to absorb the extra cost or secures a tariff exemption, the cost will likely be passed on to consumers. India has been gaining significant production volume, shifting the global dynamics,” said Tarun Pathak, Research Director at Counterpoint Research.
Official trade data supports this shift. India’s exports to the US reached $25.52 billion during April to June in the current financial year, registering a growth of nearly 23 percent compared to the same period last year. Total bilateral trade between India and the US stood at $32.41 billion in the first quarter of FY25, while overall trade in the financial year so far has crossed $86 billion, according to data from the Ministry of Commerce.