Synopsis
Industry experts applaud the US decision to exempt electronics from tariffs, granting India a competitive advantage over China. This move is expected to bolster India's electronics sector amidst ongoing trade tensions.Key Takeaways
- India gains a significant tariff advantage over China.
- US exempts electronics from reciprocal tariffs.
- China maintains high tariffs on key products.
- Zero tariffs on Indian exports to the US.
- Strategic shifts are necessary for India’s global competitiveness.
New Delhi, April 13 (NationPress) Industry leaders and experts expressed their approval of the recent decision by the Donald Trump administration to exempt smartphones, computers, and various other electronics imported into the country from reciprocal tariffs. This strategic move has positioned India with a significant advantage over China.
According to a notice from the US Customs and Border Protection, smartphones and computers will be excluded from President Donald Trump's 10 percent global tariff imposed on numerous countries, as well as the substantially higher 145 percent tariffs applicable to China.
“There will be no major disruptions. This is the moment to enhance capacities, and the long-term trend against China will remain strong. Nonetheless, the shocking developments of the past few weeks signify a tectonic shift, and realignments are inevitable,” stated Pankaj Mohindroo, Chairman of the India Cellular and Electronics Association (ICEA).
While China maintains a 20 percent tariff on products like iPhones, laptops, tablets, and smartwatches, only the reciprocal tariffs for China have been lifted.
In contrast, India enjoys a zero tariff status on iPhones, all smartphones, laptops, and tablets exported to the US.
Vietnam too benefits from a zero tariff on all Samsung (and other brands) smartphones, laptops, and tablets sent to the US.
Both India and Vietnam find themselves in a similar position regarding tariffs on these products, enjoying a 20 percent tariff advantage over China.
The US exemption is applicable to products entering the US or being removed from storage as early as April 5, as per the Customs notice. This exemption also extends to other electronic devices and components, including semiconductors, solar cells, and memory cards.
The exclusion of tariffs by the US offers vital relief to the global technology sector, alleviating pressures across consumer electronics, semiconductors, and hardware, noted Prabhu Ram, VP of Industry Research Group at CyberMedia Research (CMR).
This move provides significant reprieve for major tech companies — particularly Apple, which has been significantly impacted — along with the broader chip and hardware industries.
“The exclusion of smartphones and chips is especially crucial considering the China tariffs. While it addresses immediate concerns, the long-term uncertainty surrounding US-China trade relations persists,” Ram informed IANS.
As the geopolitical and economic landscape continues to change, India must act quickly, utilizing trade diplomacy, adjusting domestic policies, and strengthening industrial resilience to mitigate risks and sustain its competitive edge in global trade, as highlighted by industry leaders.
