The rates were a great shock for the best electronic exporters such as Apple and Samsung. There is fear of “manufacturing activities for the United States will be lost” if the rates persist and no solution is reached through negotiation. Electronics exports, the iPhones can be affected for us | Page 11
New Delhi: the announcement of the Trump administration of a 25% rate on India, together with an additional sanction for the Nuova Delhi trade with Russia, was a great shock for the best electronic exporters, such as Apple and Samsung. Sector officials fear that “manufacturing activities for the United States will be lost” if the rates persist and no solution is reached through the bilateral sub-negoing commercial agreement with Washington.
The move comes days after India emerged as the largest iPhone exporter in the United States, with a contribution of 44% in the second quarter of 2025, exceeding China, whose share dropped from 25% from 61% in the same quarter last year, according to Canalys.This can change if the current India rates persist, they say that the sector officials, stressing that the American administration has already exported the exports of smartphones and other electronics containing semiconductors from China with high withdrawals, taxing them only to about 20%.
“We are shocked by what President Trump has announced as regards the rates on India. If they are maintained, India will lose the electronic manufacturing activity in the United States. Companies such as Apple and Samsung deviate the production of India as markets such as those in Europe and Asia,” said a high official in the Toi sector. “We expected more from the political diplomacy of India with the United States. This is a rude shock. Now we are setting our hopes on the bilateral commercial interviews in progress,” added the official.
For Apple, which has quickly expanded to India and plans to increase the production capacity for iPhone to about 60 million units per year from the estimated 40 million units at the moment, this may require a “review” of the plans. “We have to see where the bilateral commercial interviews go with the United States and what the fate of the interviews with China will be,” said an official.
“The 25% rate is certainly negative as it is comparable to a lower rate for peers such as Vietnam, Indonesia and the Philippines, which compete with India in a similar category of high work intensity electronic products and products for the estimate of the growth of GDP for the intervention for 20 BPS.
For Samsung, the situation is similar. The Korean giant, who also started sending smartphones manufactured in India to the United States, is now likely to enter a revaluation.
