India Gains Tariff Edge, but iPhone 17 May Get Costlier

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Indian electronics exports of devices, including smartphones and laptops, are set to become 20% cheaper in the US than those from China after the US government proposal for dropping tariffs on a variety of consumer electronics. The decision, which has been sought by the Trump administration, is viewed as a major shot in the arm for India’s fast-expanding electronics manufacturing sector. The tariff exemption makes India and Vietnam the clear beneficiaries compared to China, which still faces a 20% tariff on wide swathes of electronics even as the reciprocal tariffs are lifted.

iPhone 17

India Gets 20% Tariff Advantage Over China in US, but iPhone 17 Prices May Rise Despite Boost

ICEA chairman Pankaj Mohindroo pointed out that the United States now has zero tariffs for both India and Vietnam while importing devices such as smartphones, tablets, and laptops. This leaves both countries in a strong position in the worldwide supply chain, particularly with US-China trade tensions continuing. The move comes as a welcome relief after it drew concern in the past weeks amid worries that the disruption of exports could hit local companies hard, said ICEA, which represents major companies including Apple and Foxconn.

India has quickly evolved into a major manufacturing base for Apple, which is expected to record iPhone shipments worth ₹1.5 lakh crore for FY 2024–25. India’s overall mobile exports have shot up by 55% YoY, crossing ₹2 lakh crore. They say that this shift bolsters India’s place in the global electronics supply chain. Ashok Chandak, the vice president of the India Electronics and Semiconductor Association, described the tariff relief as a meaningful opportunity for Indian manufacturers to scale their operations, albeit temporarily.

But there is still some caution. Counterpoint Research’s Neil Shah noted that bringing smartphone manufacturing back to the US would be a long process requiring new strategies and incentives. Meanwhile, the upcoming iPhone 17, which is expected to feature a 120Hz ProMotion display, might see a price increase of $100 in the US and ₹5,000–₹10,000 in India — potentially offsetting some of the benefits of the tariff exemption for Indian buyers.

FAQs

Why are Indian electronics now cheaper in the US?

The US removed tariffs, giving India a 20% price edge over China.

Will the iPhone 17 be cheaper too?

No, it’s expected to cost more due to new ProMotion display.

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