India could soon witness the ripple effects of the new Tariffs imposed by US President Donald Trump. The new trade policies are already causing waves across the global tech industry and it could soon cause trouble for the smartphone market in India. Although the tariffs are imposed on the goods imported into the US, it’s not far when it ends up increasing the manufacturing and distribution cost of smartphones worldwide. This also includes some of the flagship and premium models sold in India.
What it Means for iPhones Sold in India:
Under the International Emergency Economic Powers Act of 1977 (IEEPA), Donald Trump has imposed several tariffs on countries with which the United States has the largest trade deficits. Under the proposed policy, goods that are imported from China could face a massive 54% tariff. However, from Vietnam, the US could collect 46% tariff. Smartphone manufacturers like Apple and Samsung relies heavily on China and Vietnam for their supply chains. Under the new tariff system, the cost of premium smartphones including iPhones and Galaxy S series is expected to witness the rise in their cost.
Apple is expanding its footprint in India after the launch of the iPhone 16 line up including iPhone 16 Pro and iPhone 16 Pro Max. But if the global production cost goes up, then the tech giant will have to adjust the pricing to maintain the profitability. This could mean that Indian consumers might end up paying more for the iPhone.
Note that the “Tariffs charged to the U.S.A.” are not tariffs at all
They are the U.S. trade deficit divided by U.S. imports from that country
For example:
Trade deficit with China ($295.4 billion) / US imports from China ($438.9 billion) = 67%
Europe: $235.6 / $605.8 = 39% pic.twitter.com/13JSrtzk68
— Julian Klymochko (@JulianKlymochko) April 2, 2025
What it Means for Samsung Flagship Phones in India:
The same goes for Samsung, where the company could face the similar trouble for its premium devices like Galaxy S24 and Galaxy S25 series. Both the lineup is assembled in Vietnam and after the new tariff imposed on Vietnam, the smartphone manufacturer could increase the price of its higher models. While Samsung does produce smartphones in India, but the tech giant still relies on the imported parts of its top-tier models.
After this situation both the smartphone giants Apple and Samsung are reportedly planning to shift a larger part of their production to India. Interestingly, this will not only increase the local productions in India, but will also help ease the long-term price impact for Indian buyers. But for now, everything is report and nothing is sure about what the US tariff system will mean for Indian smartphone market.
New reciprocal US tariffs
🇨🇳 China: 34%
🇪🇺 European Union: 20%
🇻🇳 Vietnam: 46%
🇹🇼 Taiwan: 32%
🇯🇵 Japan: 24%
🇮🇳 India: 26%
🇰🇷 South Korea: 25%
🇹🇭 Thailand: 36%
🇨🇭 Switzerland: 31%
🇮🇩 Indonesia: 32%
🇲🇾 Malaysia: 24%
🇰🇭 Cambodia: 49%
🇬🇧 United Kingdom: 10%
🇿🇦 South Africa: 30%
🇧🇷…— The Spectator Index (@spectatorindex) April 2, 2025
Here’s a list of countries that come under US trade deficits:
Although we don’t have the official listing, but as per the US Commerce Department’s 2024 trade deficit report , here’s the list of countries that lie under the US trade deficit:
- China
- European Union
- Mexico
- Vietnam
- Ireland
- Germany
- Taiwan
- Japan
- South Korea
- Canada
- India
- Thailand
- Italy
- Switzerland
- Malaysia
- Indonesia
Other than this the US Trade Representative (USTR) has also mentioned 21 nations that are following deemed trade practices. This includes:
- Argentina
- Australia
- Brazil
- Canada
- China
- European Union
- India
- Indonesia
- Japan
- South Korea
- Malaysia
- Mexico
- Russia
- Saudi Arabia
- South Africa
- Switzerland
- Taiwan
- Thailand
- Turkey
- United Kingdom
- Vietnam
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