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The US has announced a 50% tariff on imports from India, these tariffs will be fully implemented on India from 27 August. Due to Trump tariff, there is a lot of pressure in Indian electronics manufacturing companies. In such a situation, many electronics companies are now thinking again on local expansion and are looking for new overseas markets. However, products such as smartphones, tablets, laptops, and some telecom equipment are still left from this tariff.

Munoth Industries signed a deal with the US company Anker in January. The company was planning to supply 5-10 lakh sales to the US every month. But, if lithium cells also have a tariff, then their US business can go to other companies. Jaswant Munoth Munoth Industries Chairman Jaswant Munoth said that business in the US gives us double profit, as well as quality control is high. Losing US market will be a big loss for our financial projections.

At the same time, Dixon Technologies had earlier said that by FY27, their phone exports will increase in the US. But now he is in weight and watch mode. A source said that Dixon cannot do anything right now. It is difficult to ask for help from the government until the entire state of tariff is clear. If the US announces tariffs on mobile phones and semiconductor products in the third week of August, Dixon will ask for help from the government.

These products are not tariffs

The US has exempted 17–18 HS codes products, such as smartphones, laptops, tablets, and some telecom equipment. The value of their exports can be around $ 50 billion. But the rest are facing 50% tariffs under electronics products, such as electrical inverters, battery chargers, and transformer parts, 14 HS codes.

Companies looking for new market

Due to the tariff, Indian companies are now looking for other markets other than the US. The CTI (Chamber of Trade and Industry) has advised to explore these markets in view of the demand of engineering products in countries like Germany, UK, Singapore, and Malaysia. Also, India has also been advised to reduce imports from the US and search for global suppliers.

India had targeted $ 80 billion electronics exports by 2030, but the tariff could cause a loss of $ 20-30 billion. Nevertheless, some companies such as Apple and Samsung, which are investing in the US, may get a discount in tariffs. India Cellular and Electronics Association (Icea) Chairman Pankaj Mohindra said that we will try to solve the challenge of Tariff with the government.