President Donald Trump’s announcement on Wednesday of a 25 per cent tariff charge on India from August 1 has triggered considerations within the authorities that electronics exports to america, significantly the rising smartphone exports — which at the moment appeal to no customs responsibility — might be affected.
A senior authorities official stated a assessment assembly on Part 232 of the US Commerce Enlargement Act of 1962 is arising in two weeks, after which there shall be extra readability on whether or not smartphone exports might be impacted. In 2018, the US had imposed a further tariff of 25 per cent and 10 per cent on metal and aluminum respectively, globally underneath the identical provision, which had impacted Indian exports.
Whereas smartphones are India’s high export to the US by worth, Trump has threatened a 25 per cent tariff on Indian-made Apple iPhones, which account for the majority of cell phone exports to the nation. Days after he introduced reciprocal tariffs on various international locations in April, the US administration had exempted telephones, computer systems and different digital merchandise, at the same time as the specter of a renewed tariff risk on these things looms massive.
Part 232 of the Act permits the US President to limit imports that threaten nationwide safety. Particularly, the Secretary of Commerce investigates imports and if it’s decided that these imports threaten nationwide safety, the President can impose tariffs or different restrictions. The time period “nationwide safety” just isn’t outlined within the statute.
At current, smartphone imports into the US from India appeal to no customs responsibility, however India levies a 16.5 per cent tariff on such exports from the US. Smartphone makers have urged New Delhi to drop these tariffs, as they’re anxious it might irk the US administration, which might impose contemporary duties on these imports. Sources stated that as a part of India’s ongoing negotiations with the US for a bilateral commerce settlement, New Delhi has agreed to cut back this responsibility to zero.
“There’s a assessment assembly (on Part 232 exemptions) within the subsequent two weeks, and we could have higher readability after that. The Commerce Ministry will negotiate for establishment,” a senior authorities official stated, requesting anonymity.
Since Trump has taken workplace, the US has launched investigations underneath Part 232 of its Commerce Enlargement Act of 1962 in sectors like semiconductors and prescription drugs, to find out whether or not imports in these industries might have nationwide safety implications for Washington.
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The Indian Specific had earlier reported that India’s share in US smartphone imports surged to just about 36 per cent within the first 5 months of 2025, from about 11 per cent in 2024. China, which continues to dominate the product class, noticed its share drop from 82 per cent to 49 per cent over the identical interval.
US smartphone imports from India jumped by over thrice year-on-year to 21.3 million items between January and Could this yr, in keeping with knowledge from the US Worldwide Commerce Fee (USITC). In worth phrases (CIF), imports of Indian-made smartphones elevated 182 per cent y-o-y to $9.35 billion, already greater than round $7 billion in the entire of 2024.
In Could, Apple CEO Tim Prepare dinner had stated the corporate expects most iPhones bought within the US within the April-June quarter to have India as their nation of origin. Roughly 20 per cent of Apple’s world iPhone manufacturing capability is now primarily based in India.
In the meantime, China exported 29.4 million smartphones to the US between January and Could — a 27 per cent y-o-y drop — valued at round $10 billion. China (49 per cent) and India (36 per cent) have been adopted by Vietnam with 8.3 million items exported, accounting for a share of 14 per cent.
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