Guide to US import tariffs on electronics manufactured in India: current 10% Section 122 rate, key manufacturers (Apple/Foxconn, Samsung, Tata), and India's growing role in the global electronics supply chain.
Electronics manufactured in India and imported into the United States face the 10% Section 122 global surcharge. India is not subject to Section 301 tariffs (China-specific) and has no active Section 232 electronics tariffs. The effective rate: 0% MFN base + 0% Section 301 + 10% Section 122 = 10% total for electronics HTS codes 8541–8542. This is the same rate as Taiwan, Malaysia, South Korea, Vietnam, and Japan.
India has emerged as a significant electronics manufacturing location, driven by the Production Linked Incentive (PLI) scheme launched in 2020 and expanded through 2026. Apple began manufacturing iPhones at Foxconn's Tamil Nadu facility and Pegatron/Tata's Karnataka facility. Samsung manufactures mobile phones in Noida, Uttar Pradesh — now the world's largest mobile phone factory by unit output. Tata Electronics (which acquired Wistron's India operations) produces iPhones in Hosur. Dixon Technologies assembles smartphones, set-top boxes, and LED TVs. Microchip, STMicroelectronics, and Renesas have established design and assembly operations.
India's PLI (Production Linked Incentive) scheme provides direct financial incentives to manufacturers producing electronics in India. The program covers smartphones, IT hardware, telecom equipment, and advanced chemistry cells. The incentives range from 4–6% of incremental sales. This government support has meaningfully reduced the cost gap between India and China for final assembly of smartphones and consumer electronics. For US buyers, this means India-assembled goods can be competitively priced AND carry a lower effective tariff than China-origin equivalents.
While final assembly has expanded rapidly, India's component supply chain remains underdeveloped. PCBs, semiconductor packaging, precision tooling, and most ICs are still imported into India before final assembly. This means India-assembled electronics have a large Chinese content — which does NOT affect the final import duty (the COO of the finished assembled product is what matters for US tariff purposes), but does mean supply chain risk remains correlated with China. India's semiconductor wafer fabrication capacity is minimal as of 2026, with Tata-PSMC fab (under construction in Gujarat) not expected to produce until 2027.
When importing India-assembled electronics: verify COO documentation (India-assembled Apple products ship with an India COO), confirm the product has been substantially transformed in India (not just labeled), and check that HTS classification is correct for finished goods vs. components. India-origin electronics are processed through US Customs like any other foreign-origin good. There is no US-India FTA, so no USMCA-style duty elimination is available. Electronics from India pay the standard 10% Section 122 rate.
| Source / Scenario | Rate | Notes |
|---|---|---|
| India | 10% | Section 122 only — no Section 301 |
| China (semiconductors 8541/8542) | 60% | Section 301 (50%) + Section 122 (10%) |
| Vietnam | 10% | Section 122 only |
| Mexico (USMCA) | 0% | FTA exempt |
From a US import duty perspective, an iPhone assembled in India (COO: India) would pay 10% Section 122 vs 35% (Section 301 + Section 122) for a China-assembled equivalent. On a $1,000 iPhone: India = $100 duty vs China = $350 duty — a $250 per-unit savings. This is a major driver of Apple's India manufacturing expansion.
India primarily produces finished consumer electronics (smartphones, TVs, appliances). Component manufacturers include: Dixon Technologies (PCBAs, chargers), Jabil India (EMS), Foxconn/Tata/Pegatron India (smartphone assembly). IC design houses include Qualcomm India, NXP India, and Infineon India — but these design centers don't change COO.
Not yet for high-tech components. India's component supply chain lacks depth in precision passives, advanced ICs, and PCBs. Most India-assembled electronics rely on Chinese, Taiwanese, and South Korean components. This doesn't affect US import duty on finished goods but creates supply chain concentration risk.
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