Trump's Tariff Break Provides India Electronics a Trade Edge

The move aids both India and Apple, as India's role in iPhone assembly continues to grow

- Shouvik Das

U.S. President Donald Trump's 90-day pause on sweeping trade tariffs may signal a major positive for India's electronics sector. Though 10% tariffs remain applicable, Wednesday's announcement has given India room to pursue trade negotiations with the U.S., which industry stakeholders believe can help smartphone makers such as Apple Inc. continue to use India as a key manufacturing destination.

It's important to retain Apple's manufacturing. As of 2024, it exported over $10 billion worth of iPhones from India to global markets, including the U.S., said three industry analysts Mint spoke with. Earlier this week, India's electronics and information technology minister Ashwini Vaishnaw said iPhone exports from India were even higher at $17 billion.

On 8 April, the electronics and information technology ministry (Meity) notified a scheme incentivizing manufacturing of electronics components, offering 10% in incentives—adding up to $2.7 billion over six years. India's total electronics exports stood at $23 billion in 2024, according to Vaishnaw.