US tariffs to hit exports of made in India iPhones, auto parts
While a recent decision of the Trump administration to slap a 10% duty on Chinese electronics imports is good news for Indian manufacturing.
Apple could be one of the biggest losers in case the Trump administration decides to slap reciprocal tariffs on import of electronics and smartphones from India as the move may put a spanner in its growing manufacturing investments here.
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The situation is equally grave for auto component makers, who ship parts worth billions of dollars to the US — estimated at around USD 7 billion for this fiscal against USD 1.4 billion worth of American imports — and thus run the risk of losing business in case the US increases tariffs on products coming out of India, an assessment carried out by TOI shows.
Apple currently is one of the biggest exporters of electronic goods from India as it ships iPhones to global markets, with the majority of them flowing into China. Estimates put the shipments to the US at close to USD 8-9 billion this financial year itself with the company increasingly using its India factories to produce massively for the American market. The India products reach the US with zero duty, making it a profitable deal for the company.
However, what is bothering the new US administration under Trump is the 16.5% duty that New Delhi charges on phones and other electronics products when they are imported to
