Electronics may face least risk from Trump's tariffs

As US President Donald Trump's reciprocal tariff threat looms for exports of engineering goods and pharmaceuticals to textiles, India's booming electronics goods shipments may be at least risk.

- Dhirendra Kumar

The duty disparity or the gap between import levies is one of the lowest for electronics among major categories, according to two people aware of the matter, who spoke on the condition of anonymity.

Commerce ministry data shows India's electronics exports to the US face an average tariff of 0.41%, while US shipments under the same category face a duty of 7.64%, resulting in a gap of 7.23%. That's far lower than 13% for diamonds and gold items, and 32% for meat and processed farm products.

The US tech giant Apple Inc, which began manufacturing in India in 2017, has been the biggest contributor to India's electronics exports to the US in recent years. "This could influence the US's approach to tariff adjustments on Indian electronic goods," the people said, stressing that any duty hike would also impact American firms.