Trump's Tariffs Shock India's Electronics Exporters

The recent announcement by the Trump administration imposing a 25% tariff on India, coupled with penalties for trade with Russia, has sent shockwaves through the electronics manufacturing sector. Giants like Apple and Samsung are now reevaluating their production strategies in India, fearing a significant loss in the US market.

India's iPhone Export Boom at Risk

India recently surpassed China as the top exporter of iPhones to the US, contributing 44% of the total in Q2 2025. However, the new tariffs could reverse this trend, especially since China enjoys lower tariff rates on similar exports.

Industry Reactions and Future Plans

Industry officials express shock and concern, highlighting potential shifts in production to non-US markets. Apple's ambitious plans to expand manufacturing in India may face a review, while Samsung considers leveraging its operations in Vietnam, where tariffs are lower.

Economic Implications for India

Economists warn that without a favorable trade agreement, India could see a downturn in GDP growth estimates. The situation underscores the delicate balance of global trade relations and their impact on emerging manufacturing hubs.