Indian Electronics Exports to US Unharmed Despite New Tariffs

• Indian electronics exports to the U.S. remain tariff exempt until at least August 14.
• Smartphones from India now represent 44% of U.S. imports as production shifts from China.
• Apple’s India-based iPhone manufacturing continues unaffected due to cost and policy edge.

Recently, President Donald Trump of the United States announced a 25% reciprocal tariff on Indian imports. However, the Indian electronics sector (smartphones, laptops, tablets) is continuing to send exports to the United States without disruption under the exempted. The Indian Electronics sector was exempted back in April 2025, and that exemption is valid until 14th August. The exemption also covers some major exports like smartphones and pharmaceuticals.

India's smartphone exports have grown by 240% year over year and now make up 44% of imports into the U.S., as Apple and other contract manufacturers (such as Foxconn) shift production to Indian facilities. India has surpassed China in terms of exports; China's dropped from 61% of smartphone exports in Q2 2025 to 25% now.

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Analysts suggest that Apple's iPhone manufacturing in India will continue to be largely insulated, due to cost efficiencies, locally attractive incentives, and long-term, global supply chain strategy that favours Indian production. iPhones made in India comprise 71% of volumes heading to the U.S.

Despite the overarching trade tension, officials point out that the electronics and pharma sectors, which represent almost 30% of India’s U.S. exports, are currently in a temporary safe harbor using the exemptions under Section 232. These sectors also form the bedrock of the country’s global manufacturing credentials.