The Indian electronics sector has received a two-week reprieve from the proposed US tariffs, as a key section related to technology products remains under review during ongoing bilateral discussions, according to government and industry officials, quoted by news agency PTI.US President Donald Trump, on Wednesday, announced a 25 per cent tariff on Indian imports effective August 1, along with an additional, unspecified penalty linked to India’s continued purchases of Russian military equipment and oil.A government official said, “Section 232 which covers electronics and technology products is expected to come up for review after two weeks. When the US had imposed basic 10 per cent duty then also technology products were exempted due to pending review of section 232. This is the position as of now. We don’t know what will (happen) after two weeks.”There is uncertainty over whether the 25 per cent tariff will come on top of the existing 10 per cent baseline tariff announced on April 2, which applies to most Indian goods with few exceptions.India’s electronics exports to the US are led by smartphones—particularly iPhones. Trump has already called on Apple to halt its India production ramp-up, and analysts say the latest move may severely disrupt Apple’s export plans.“Today’s sudden announcement of 25 per cent tariffs on exports from India to US will certainly hit Apple’s plan of making India as a large export hub for iPhone exports to US,” said Navkendar Singh, associate vice president for devices research at IDC India, South Asia and ANZ, quoted by PTI.He added that US shipments account for around 25 per cent of Apple’s iPhone deliveries—about 60 million units annually.“To meet the iPhone demand in the US from iPhones assembled in India requires significant manufacturing expansion in India, which will be directly impacted by these new tariffs.”According to industry sources, cited by PTI, Apple is planning to scale up iPhone output to 60 million units this year, compared to 35–40 million in 2024–25. Apple CEO Tim Cook recently stated during the company’s Q2 earnings call that all iPhones bound for the US in the June quarter were shipped from India. These are assembled by Foxconn at its Tamil Nadu facility.“For Apple, near-term challenges include higher costs on India-assembled iPhones exported to the US, potentially dampening demand and prompting recalibration of its supply chain. While some long-term shifts toward US-based production are in motion, India will remain a critical lynchpin in Apple’s global strategy,” said Prabhu Ram, vice president at CyberMedia Research’s Industry Intelligence Group.The move comes at a time when Indian electronics manufacturers are also under pressure from China’s export restrictions on key components, capital goods, and skilled professionals. “China’s restrictive measures could affect supply and increase costs until alternatives emerge. Increase in tariffs by the US will affect exports, shrinking demand. Both these steps could result in slowing down growth,” said Elcina secretary general Rajoo Goel.
