US Tariff Exemption Makes Indian Electronics 20% Cheaper Than Chinese: ICEA

(MENAFN- KNN India) New Delhi, Apr 14 (KNN) Indian exports of smartphones, laptops and other electronics to the United States are expected to become 20 per cent cheaper compared to those from China following the Trump administration's decision to remove tariffs on a range of consumer electronics, according to the India Cellular and Electronics Association (ICEA).

The exemption, announced over the weekend, covers smartphones, tablets, laptops, flat-panel monitors and certain semiconductor components that were previously subject to reciprocal tariffs imposed on countries including China, India, and Vietnam. Industry experts view this development as a significant boost for India's growing electronics manufacturing sector.

"China still has 20 percent tariffs on iPhones, laptops, tablets, and watches. Only reciprocal tariffs have been removed for China. India has zero tariff on iPhones and all smartphones, laptops and tablets exported to the US," explained Pankaj Mohindroo, Chairman, ICEA.

He added that Vietnam enjoys similar advantages, with both countries now holding a 20 per cent tariff advantage over China on these products.

The ICEA, which represents major companies like Apple, Foxconn, and Dixon, expressed relief after weeks of concern over potential export disruptions. "Now there will be no extraordinary disruption," Mohindroo stated.

"The incredible shock of the last few weeks is in itself a tectonic event and the realignments are bound to happen without too much blood spilt in our category," he mentioned.

India has emerged as a key manufacturing hub for Apple, with iPhone exports reaching approximately Rs 1.5 lakh crore in 2024-25, according to Union Minister Ashwini Vaishnaw.

Total mobile phone exports from India exceeded Rs 2 lakh crore this year, representing a 55 per cent increase from the previous fiscal year.

Ashok Chandak, President, India Electronics and Semiconductor Association (IESA), described the tariff exemption as a significant but potentially short-term reprieve for global tech manufacturers.

"Despite the dampening of near-term export euphoria, the long-term opportunity for India remains robust," he noted, pointing out that with US electronics imports exceeding USD 250 billion-of which 30 per cent still come from China-India has substantial room to grow from its current USD 12 billion export base.

Industry analysts believe this development strengthens India's position in global electronics supply chains, particularly as US-China trade tensions persist.

(KNN Bureau)

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