Mint Primer: Will US tariffs on Indian goods hit iPhones prices?

Subscribe to enjoy similar stories. Trump, while addressing a joint session of the US Congress, labelled tariffs, or import duties, imposed by various nations on goods exported by the US as “very unfair". He also singled out “higher than 100%" tariffs that he said India currently imposes on automotive imports from the US.

Although Trump did not specifically refer to electronic goods in his address, strictures set to be imposed by the US from 2 April could add tax liabilities to electronic goods imported by technology companies from India, too. Therefore, brands that are using India as a manufacturing hub now could see their overall costs increase. Such a situation would theoretically put pressure on the advantage that India currently holds over other countries as a low-cost, electronics manufacturing destination for glibal brands such as Apple.

According to a central government estimate, India’s net electronics exports to the world stands at $30 billion. Nearly 60% of this comes from smartphones, and two-thirds of this are driven by Apple’s iPhones. The Centre has projected the net goods and services exports from India to the world to come to $800 billion in FY25, and merchandise exports (i.e.

of physical goods only) at nearly $450 billion. Electronics, thus, account for nearly 4% of all exports, and 7% of goods exports from India. These figures are expected to grow steeply as India ramps up factories to make semiconductors and higher-value components within the next two financial years.