In good news for India’s growing smartphone industry, the United States has decided to remove tariffs on electronic items, including smartphones, computer monitors, and other gadgets. This is a major relief, especially after the previous tariffs were imposed by the Trump administration.
The US Customs and Border Protection announced on Friday that these electronic goods, which were previously hit with high tariffs—26% on Indian products and 145% on Chinese items—would be exempt from the additional taxes.
This decision was likely influenced by concerns about the impact on iPhone prices in the US. Apple, which makes about 80% of its devices in China and a significant portion in other countries like India, Vietnam, and Brazil, would have seen iPhone prices rise dramatically due to these tariffs. Reports show that Apple controls more than half of the smartphone market in the US. Before the tariffs were announced, Apple had already shipped 1.5 million devices from India.
The US decision brings much-needed relief to India, where smartphones became the country’s top export last year. In the financial year 2024–25, India’s mobile phone exports reached a record Rs. 2,00,000 crore, marking a 55% increase compared to Rs. 1,29,000 crore in 2023–24.
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The India Cellular and Electronics Association (ICEA) credits this rise in exports to the increased manufacturing of smartphones by companies like Apple and Samsung in India. As a result, India’s total mobile phone production for FY25 is estimated at Rs. 5,25,000 crore, up from Rs. 4,22,000 crore in the previous year.
Industry experts in India are welcoming this decision. Faisal Kawoosa, founder of Techarc, explained that it was unrealistic to expect a quick change in the global supply chain to meet new tariff rules. He had predicted that a list of exemptions would be necessary, and it appears his prediction was accurate.
Prabhu Ram, Vice President of CyberMedia Research (CMR), called the US decision a “timely and meaningful” step. He believes it will help ease global trade tensions and benefit major tech companies like Apple, Samsung, Lenovo, Dell, AMD, and Nvidia.
Tarun Pathak, Research Director at Counterpoint Research, pointed out that electronics are one of the largest categories of imports for the US. Higher prices would have directly impacted American consumers, and the exemptions suggest efforts to oppose these tariffs from the beginning.
Also See: Apple Boosts iPhone Production in India to $22 Billion, Reducing Dependence on China
The tariffs were set to start on April 9, 2024. However, the US quickly reversed course, announcing a 90-day pause for countries impacted by the tariffs, except for China, where tariffs were increased to 145%.
This move is a major step forward for India’s smartphone industry and could help further boost exports, especially in mobile phone manufacturing.
