iPhones and laptops exported from India to US now cost 20% less than Chinese shipments

The export of iPhones, smartphones, tablets, and laptops from India to the US will now be 20 per cent cheaper compared to similar products shipped from China. This follows a recent decision by the US administration to exempt several electronics from additional import duties, according to the India Cellular and Electronics Association (ICEA).

The US government on Saturday revised its tariff policy, removing extra taxes on smartphones, tablets, laptops, and certain electronic items. As a result, India and Vietnam now enjoy a tariff advantage of 20 per cent over China on these goods, ICEA said.

“China still has 20 per cent of iPhones, laptops, tablets, and watches. Only reciprocal tariff has been removed for China. India has zero tariff on iPhones and all smartphones, laptops and tablets exported to the US. Vietnam also has zero tariff on all Samsung and other smartphones, laptops and tablets exported to the US. So India and Vietnam are similarly placed on tariffs on these products and both enjoy a 20 per cent tariff advantage over China,” ICEA Chairman Pankaj Mohindroo told PTI.

ICEA represents major electronics and smartphone manufacturers including Apple, Foxconn, and Dixon. The shift in US policy is expected to support Apple’s export operations from India, where the iPhone ecosystem is currently among the largest job generators.

In 2024–25, mobile phone exports from India crossed ₹2 lakh crore, up 55 per cent from ₹1.29 lakh crore in the previous year, ICEA data showed. Union Minister Ashwini Vaishnaw said that iPhones alone contributed ₹1.5 lakh crore to these exports.

The Trump administration's reciprocal tariff order had earlier created uncertainty for Apple’s production plans in both China and India. However, the latest exemption covers smartphones, laptops, hard drives, flat-panel monitors, and certain semiconductor chips. Equipment used for manufacturing semiconductors remains excluded and will still face high tariffs.

"Now there will be no extraordinary disruption. Time to set up capacities, long-term trend against China will remain robust. But the incredible shock of the last few weeks is in itself a tectonic event and the realignments are bound to happen without too much blood spilt in our category," said Mohindroo.

Ashok Chandak, President of the India Electronics and Semiconductor Association (IESA), said the exemption is a strategic adjustment but not a major policy shift. “Continued underlying tensions and uncertainties may prompt global players to diversify their manufacturing base — creating a timely opportunity for India to emerge as a preferred alternative. Despite the dampening of near-term export euphoria, the long-term opportunity for India remains robust,” he said.

Chandak noted that the US imports over USD 250 billion in smartphones and computing devices annually, with 30 per cent coming from China. India’s share stands at USD 12 billion, suggesting significant potential to scale.

“For Indian businesses, this is a vital window to scale up operations, reorient strategies, and strengthen their position in global electronics value chains. To fully realise this potential, India must double down on building long-term, sustainable competitive advantages,” Chandak added.

Industry observers see the policy change as a sign for investors to plan long-term. “It is not easy to build such an intricate value chain overnight, even for the US. Our strengths have prevailed showing the resilience we have built over these years. This means business as usual for brands like Apple in India, which will only grow further. At the same time the supply chain has much predictability,” said Techarc Co-Founder and Chief Analyst Faisal Kawoosa.

CyberMedia Research's Vice-President for Industry Research Group, Prabhu Ram, called the move “timely relief” for companies like Apple, Dell, Samsung, and TSMC. “Whether an olive branch or a pragmatic reset, the move helps reduce friction in a highly interconnected global electronics supply chain. That said, the broader trajectory of US-China trade policy remains uncertain,” he said.

Neil Shah, Vice-President at Counterpoint Research, said reshoring manufacturing to the US is not practical in the short term. “Bringing back the manufacturing of smartphones, especially iPhones, is going to be a marathon not a sprint if the US government is serious about it. And, if really serious, it could mean now is not the time and will need a very different strategy and multi-year incentive scheme,” Shah said.