US tariff to hit iPhone production expansion, electronics exports

New Delhi: US President Donald Trump’s announcement of 25 per cent tariff on all goods coming from India starting August 1, plus an unspecified penalty, is expected to impact Apple’s plans to expand iPhone manufacturing in India as well as export of other electronics to the US.

The move comes at a time when Indian electronics production is reeling under pressure due to restrictions imposed by China on supply of several critical components, capital goods and even skilled technology professionals.

According to industry experts, while Chinese restrictions may slow down production, US tariff will impact exports of electronics from India.