India’s electronics industry may lose $20-30 billion in future business because of new US tariffs. Industry experts say that semiconductors could be the next target for these tariffs.
Some big companies like Apple and Samsung might be safe from these tariffs, as they have large investments in the US and already make products in India. This means their smartphones and semiconductors might be exempt from extra charges.
Currently, India exports a large amount of electronics to the US. In FY25, electronics exports to the US were worth $14.6 billion, and smartphones made up 72% of that ($10.5 billion). The rest included products like electric inverters, battery chargers, and transformer parts.
Overall, India’s electronics exports in FY25 were $38.6 billion, with the US being the biggest buyer (38% share). The UAE, Netherlands, and UK followed. Interestingly, some exports first go to the UAE or Netherlands before reaching the US.
However, nearly $4 billion worth of India’s non-smartphone electronics going to the US will now face 50% tariffs. These tariffs are split into:
- 25% reciprocal tariffs (already in place)
- Another 25% extra tariffs (starting August 27, linked to India’s Russian oil purchases)
The April 5 US order excludes smartphones, tablets, laptops, servers, and certain telecom equipment from these tariffs. But products like semiconductors will be taxed depending on how much semiconductor content they have.
Some companies, like Motorola, could be hit by these semiconductor tariffs because they don’t have confirmed US investment plans, even though they’ve increased exports to the US from India.
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An industry executive warned, “This will make India more dependent on smartphone exports, while other electronics may struggle. This could hurt the whole electronics manufacturing ecosystem.
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