India and Vietnam emerge as tariff winners
India and Vietnam are gaining a major advantage in the global electronics market following the Trump administration’s latest tariff adjustments. The U.S. has lifted reciprocal tariffs on key consumer electronics from many countries, such as smartphones, laptops, and tablets, while keeping steep duties in place for Chinese-made goods.China faces a 20 per cent tariff on key tech exports
Despite the shift in the government policy, China continues to face a 20 per cent tariff on exports of iPhones, laptops, tablets, and smartwatches to the U.S. Only reciprocal tariffs have been removed, leaving the original duties intact. By contrast, India and Vietnam face zero tariffs on similar products, giving them a clear 20 per cent pricing edge in the U.S. market.
India and Vietnam offer cost-effective alternatives
According to the India Cellular and Electronics Association (ICEA)- which represents Apple, Foxconn, Xiaomi, Dixon, and Lava, this policy shift could accelerate diversification away from China. For instance, Vietnam faces no tariffs on Samsung smartphones, while India enjoys zero-duty exports on iPhones and laptops.
However, some product categories are still taxed heavily. Audio products like AirPods and headphones exported from China face over 100% tariffs, while the same items from India and Vietnam will face a lighter 10 per cent tariff.
Industry reactions and implications
ICEA Chairman Pankaj Mohindroo welcomed the move, noting it would prevent disruption in the tech supply chain. “Now, there will be no extraordinary disruption. It’s time to set up capacities… realignments will happen smoothly,” he said.
The U.S. Customs and Border Protection clarified that the exemption covers devices not typically manufactured in the U.S., including smartphones, laptops, processors, hard drives, and memory chips.
Analysts predict accelerated diversification
Experts believe the shift will prompt global tech giants like Apple and Nvidia to diversify faster. Prabhu Ram of CMR said the exemptions bring relief but warned that U.S.-China trade tensions remain uncertain, and long-term impacts on the global supply chain could still be significant.