Smartphones, pharma, energy escape 25% tariff

Rajeev Jayaswal

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Almost half of India’s $86.5 billion worth annual exports to the US could, for the time being be left out of President Donald Trump's 25% reciprocal tariff starting August 1,as comprehensive exemptions for electronics, pharmaceuticals, and energy products remain in place under existing White House orders.

The exemptions relate to Trump's executive order 14257 issued on April 2, which exempted broad categories including semiconductors, pharmaceuticals, energy products, and critical minerals from the punitive levies that the US president announced. A White House clarification on April 11 then expanded it to specifically include finished electronics like smartphones, laptops, and computers—providing crucial protection for commodities that India exports heavily to the US.

According to government data, India exported goods worth $86.51 billion to the US in FY25 and imported $45.33 billion of American merchandise that year.

Smartphones generated $10.9 billion in exports to the US during 2024-25, while pharmaceutical exports totalled $9.8 billion and petroleum products contributed $4.1 billion.