After exemption, Indian iPhone smartphone exports to our smartphones have a 20% tariff advantage in China: Industry

Industry agency ICEA said on Sunday (April 13, 2025) that laptops from India to the United States will be 20% cheaper than exports of iPhones, smartphones, tablets, and laptops shipped from China.

The U.S. government revised its tariff order on Saturday to exempt new taxes on smartphones, tablets, laptops and some other electronic devices.

“China still owns 20% of iPhones, laptops, tablets and watches. Reciprocal tariffs were removed only in China. India’s export of iPhones, all smartphones, laptops and tablets to the United States Vietnam has zero tariffs on all Samsung and other products of smartphones, extensions and vietna, so India’s zero tariffs also apply to India, which is the same. ICEA Chairman Pankaj Mohindroo said.

The Indian Cellular and Electronics Association represents major smartphone companies and their manufacturers, including Apple, Foxconn, Dixon, etc.

Apple’s iPhone ecosystem in India has become India’s largest job creator and one of the country’s most important exports.

According to ICEA, mobile phone exports from India had an all-time high of Rs 20 lakh in 2024-25, up 55% from Rs 1.29 crore recorded in 2023-24.

Union Minister Ashwini Vaishnaw said the export value of iPhones in the smartphone sector alone is Rs 1.5 lakh.

The reciprocal tariff system announced by U.S. President Donald Trump raises concerns about Apple’s iPhone production plans in China and India.

But to get rid of the industry’s relief, the Trump administration said on Saturday (as per Indian Standard Time) that it would exclude electronic products such as smartphones and laptops from mutual tariffs imposed from China and other countries. This move can help reduce prices for popular consumer electronics

U.S. Customs and Border Protection says items such as smartphones, laptops, hard drives, tablet monitors, and some chips will be eligible for exemptions. Machines used to make semiconductors are also excluded. This means they will not be subject to the current 145% tariffs imposed on China or benchmark tariffs elsewhere.

“There will be no abnormal destruction right now. The time to build capacity will remain strong for China. However, the incredible shocks of the past few weeks are themselves tectonic events, and readjustment will surely emit too much blood in our category,” said Mr. Mohindroo.

Ashok Chandak, president of IESA, a semiconductor and electronics industry body, said the Trump administration’s recent decision to exempt smartphones, computers and other electronics from mutual tariffs could provide important — albeit short term — for technology manufacturers and consumers in the U.S. and globally

While the move marks a shift in tactical recalibration rather than a shift in broader trade policy, it remains a welcome development in eased short-term supply chain disruption, geopolitical tensions and resentment from American consumers, he said.

“The continued tension and uncertainty may prompt global players to diversify their manufacturing bases – providing India with timely opportunities as a preferred alternative. Despite recent damping of exports of euphoria, India’s long-term opportunities remain strong.”

He said that as the United States imports more than $250 billion worth of smartphones and computer goods, “30% currently comes from China and currently has $12 billion in exports, but there is still a lot of room for growth.”

“So, for Indian companies, it is an important window for expanding operations, redirecting their strategies and strengthening their position in the global electronic value chain. To achieve this potential, India must double down on the long-term, sustainable competitive advantage.”

According to industry analysts, while the exemption brings relief to major technology players, changes in positions will lead to long-term business and investment stability strategies for global investors, while India currently has an advantage in the uncertainty of U.S.-China trade relations.

“It’s not easy to build such a complex value chain overnight, even for the United States, our strengths have prevailed, which shows the resilience we have built over the years. This means that for businesses like Apple, this will only grow further. At the same time, the supply chain has a lot of predictability.

Cybermedia Research (CMR), Vice President – Industry Research Group Prabhu Ram said the U.S. tariff exclusion rate promptly alleviates the global technology ecosystem and relieves pressure on key players, especially Apple, especially Dell, Samsung, Samsung, TSMC, TSMC, AMD, NVIDIA, NVIDIA, and the wider half-piece and hardware industries.

“Whether it’s an olive branch or a pragmatic reset, this move helps reduce friction in the highly interconnected global electronic supply chain. That is, the broader trajectory of U.S.-China trade policy remains uncertain,” Ram said.

Neil Shah’s vice president of Counterpoint Research said he believes it is impractical to move manufacturing and supply chains to the U.S. by charging U.S. fees and raising tariffs, which in turn hurts the most valuable U.S. companies like Apple, NVIDIA, etc.

“If the U.S. government takes smartphones seriously, especially iPhone manufacturing, especially iPhones, it will be a marathon. And, if it is really serious, it may mean that it is not the time and requires a very different strategy and years of incentive plans.”