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Time of India
12-08-2025
- Business
- Time of India
Donald Trump tariffs: Indian electronics pivot as levies push diversification; new markets eyed
AI image With the US set to impose steep new tariffs that industry executives say resemble the protectionist levies of the Great Depression era, Indian electronics exporters are scouting alternative markets in Europe, the Middle East and Africa. The move comes as the US, still the largest buyer of India's electronics goods, becomes a tougher market, weighed down by tariff hikes and shifting content-origin rules. 'I have been reaching out to my customers proactively. They are still issuing orders, but there are concerns about how this will pan out,' Sanjay Agarwal, managing director of Globe Capacitors, which exports about Rs 100 crore worth of materials annually to the US, was quoted as saying by ET. 'I have already controlled my purchases, especially for the materials I buy only for US customers. As far as looking at alternative markets is considered, that is always on the horizon', he added. While most electronics exports, including smartphones, currently remain exempt from both the 25% tariffs imposed by US President Donald Trump and the additional 25% set to take effect from August 26, these exemptions are under review. They hinge on a US commerce department section 232 investigation mandated under the Trade Expansion Act, 1962, with findings expected in the coming weeks, according to ET. Rajoo Goel, secretary general of the Electronic Industries Association of India (ELCINA), said about 75–80% of India's electronics exports are shielded from the new 50% tariff regime, but the remainder, including PCB assemblies, telecom gear, consumer products and power electronics, will feel the pinch. 'For these products, our value addition is higher and would impact several domestic companies, including MSMEs,' Goel said, as per ET. US-bound electronics exports from India jumped 43.5% to $15.89 billion in FY25. Smartphones led the surge, accounting for $10.56 billion, up 89% from the previous year and made up 66% of all electronics exports to the US. 'We are monitoring the situation closely and are looking at other markets for our products. For mobile phones, the Middle East and Africa are coming up as important destinations and for lighting, Europe is a market we are evaluating,' said an executive at an electronic manufacturing services (EMS) firm. Assembled photovoltaic cells (PVC) modules, the second-largest category, fell 32.7% to $1.81 billion in FY25 due to tighter curbs on imported units. Other exports included electronic instruments ($1.4 billion), computer hardware such as laptops ($154 million), and consumer electronics like cameras ($115 million). For the roughly $2 billion worth of electronics exports to the US beyond smartphones and PVC modules, there are ample alternative markets, according to Amrit Manwani, chairman of EMS major Sahasra Group. 'Exporters should explore Europe, Australia, South East Asia, and given the geopolitical realignment, even Russia. Many firms may have to adapt and establish partial or full manufacturing in the US given its predominance as a market, if things don't ease,' Manwani said. Another EMS executive was quoted as saying by ET that companies need to focus on 'demand resilience' in addition to supply chain resilience. 'Companies will have to look at other markets like the Middle East, Europe, Latin America and Africa. It is an opportunity for Indian companies to go beyond the US and deepen their presence in other countries as well,' the executive said. Stay informed with the latest business news, updates on bank holidays , public holidays , current gold rate and silver price .
Economic Times
12-08-2025
- Business
- Economic Times
Electronics exporters eye new markets fearing Trump's tariff shocks
ETtech As towering new tariffs reacquaint the world with lopsided levies last seen during the Great Depression nearly a century ago, local electronics companies are looking at alternative markets beyond the US – ironically, the primary revenue generator for the biggest Make-in-India success the Middle East and Africa are now featuring among alternative export destinations, sources said, while the US accounting for more than a third of industry shipments becomes a more difficult market, picketed by tariff guardrails and shifting content-origin goalposts. "I have been reaching out to my customers proactively. They are still issuing orders, but there are concerns about how this will pan out.,' said Sanjay Agarwal, Managing Director, Globe Capacitors, which exports materials worth about Rs 100 crore annually to the US. 'I have already controlled my purchases, especially for the materials I buy only for US customers,' Agarwal said. 'As far as looking at alternative markets is considered, that is always on the horizon.' Trade uncertainty has pushed exporters of a range of electronics beyond the dominant smartphones and assembled photovoltaic cells (PVC) modules to begin early discussions on ways to enter alternative markets, sources said. At the moment, most electronics exports, including smartphones, are exempt from the 25% tariffs imposed on India originally by US President Donald Trump, and the additional 25% set to go live from August 26. This is owing to an ongoing Section 232 investigation by the US Commerce Department as mandated under the Trade Expansion Act, 1962, the findings of which are set to be announced in the coming is too early to assess the full impact of the trade changes being implemented by the US, but Indian firms with existing manufacturing footprint abroad may look to expand those operations, said Rajoo Goel, Secretary General, Electronic Industries Association of India (ELCINA). Material impact "About 75-80% of India's electronics exports are currently exempt from the additional 50% tariff regime. In the case of smartphones and IT products such as tablets as flat panel displays, which are exempt, India's value addition is relatively lower since we are primarily doing assembly,' Goel said. 'But for the remaining 25-30% products, such as PCB assemblies, telecom, consumer products, power electronics, which are subject to this new 50% tariff, our value addition is higher and would impact several domestic companies, including MSMEs."US-bound electronics exports jumped 43.5% to $15.89 billion in FY25. Smartphones made up 66% of this at $10.56 billion, and rose 89% in FY25."We are monitoring the situation closely and are looking at other markets for our products. For mobile phones, the Middle East and Africa are coming up as important destinations and for lighting, Europe is a market we are evaluating," said an executive at an electronic manufacturing service (EMS) photovoltaic cells (PVC) modules were the second largest category, shrinking 32.7% to $1.81 billion in FY25, due to increasing restrictions on imported units. The rest was spread across electronic instruments ($1.4 billion), computer hardware ($154 million) such as laptops, and consumer electronics ($115 million) such as cameras."For the roughly $2 billion of electronics exports to the US, beyond smartphones and PVC, there are enough markets which exporters should explore, be it Europe, Australia or South East Asia. Given the geopolitical realignment that is happening, Russia should also be explored," Amrit Manwani, Chairman of electronic manufacturing services major Sahasra Group said. Echoing Goel, Manwani also said many firms may have to adapt and establish partial or full manufacturing in the US given its predominance as a market, if things don't ease. "Just as there has been talk of supply chain resilience, companies will now have to wake up to demand resilience. Companies will have to look at other markets like the Middle East, Europe, Latin America and Africa. It is an opportunity for Indian companies to go beyond the US and deepen their presence in other countries as well," another EMS executive said. Elevate your knowledge and leadership skills at a cost cheaper than your daily tea. As 50% US tariff looms, 6 key steps that can safeguard Indian economy As big fat Indian wedding slims to budget, Manyavar loses lustre Why are mid-cap stocks fizzling out? It's not just about Trump tariffs. The airport lounge war has begun — and DreamFolks is losing Stock Radar: UNO Minda eyeing fresh 52-week high in next few weeks; check target and stop loss for long positions Buy, Sell or Hold: Antique recommends buy on Siemens; Avendus upgrades SBI to Buy post June quarter results Stock picks of the week: 5 stocks with consistent score improvement and upside potential of up to 25% Weekly Top Picks: These stocks scored 10 on 10 on Stock Reports Plus
Time of India
12-08-2025
- Business
- Time of India
Electronics exporters eye new markets fearing Trump's tariff shocks
Academy Empower your mind, elevate your skills ETtech As towering new tariffs reacquaint the world with lopsided levies last seen during the Great Depression nearly a century ago, local electronics companies are looking at alternative markets beyond the US – ironically, the primary revenue generator for the biggest Make-in-India success the Middle East and Africa are now featuring among alternative export destinations, sources said, while the US accounting for more than a third of industry shipments becomes a more difficult market, picketed by tariff guardrails and shifting content-origin goalposts."I have been reaching out to my customers proactively. They are still issuing orders, but there are concerns about how this will pan out.,' said Sanjay Agarwal, Managing Director, Globe Capacitors, which exports materials worth about Rs 100 crore annually to the US.'I have already controlled my purchases, especially for the materials I buy only for US customers,' Agarwal said. 'As far as looking at alternative markets is considered, that is always on the horizon.' Trade uncertainty has pushed exporters of a range of electronics beyond the dominant smartphones and assembled photovoltaic cells (PVC) modules to begin early discussions on ways to enter alternative markets, sources the moment, most electronics exports, including smartphones, are exempt from the 25% tariffs imposed on India originally by US President Donald Trump, and the additional 25% set to go live from August 26. This is owing to an ongoing Section 232 investigation by the US Commerce Department as mandated under the Trade Expansion Act, 1962, the findings of which are set to be announced in the coming is too early to assess the full impact of the trade changes being implemented by the US, but Indian firms with existing manufacturing footprint abroad may look to expand those operations, said Rajoo Goel, Secretary General, Electronic Industries Association of India (ELCINA)."About 75-80% of India's electronics exports are currently exempt from the additional 50% tariff regime. In the case of smartphones and IT products such as tablets as flat panel displays, which are exempt, India's value addition is relatively lower since we are primarily doing assembly,' Goel said. 'But for the remaining 25-30% products, such as PCB assemblies, telecom, consumer products, power electronics, which are subject to this new 50% tariff, our value addition is higher and would impact several domestic companies, including MSMEs."US-bound electronics exports jumped 43.5% to $15.89 billion in FY25. Smartphones made up 66% of this at $10.56 billion, and rose 89% in FY25."We are monitoring the situation closely and are looking at other markets for our products. For mobile phones, the Middle East and Africa are coming up as important destinations and for lighting, Europe is a market we are evaluating," said an executive at an electronic manufacturing service (EMS) photovoltaic cells (PVC) modules were the second largest category, shrinking 32.7% to $1.81 billion in FY25, due to increasing restrictions on imported units. The rest was spread across electronic instruments ($1.4 billion), computer hardware ($154 million) such as laptops, and consumer electronics ($115 million) such as cameras."For the roughly $2 billion of electronics exports to the US, beyond smartphones and PVC, there are enough markets which exporters should explore, be it Europe, Australia or South East Asia. Given the geopolitical realignment that is happening, Russia should also be explored," Amrit Manwani, Chairman of electronic manufacturing services major Sahasra Group said. Echoing Goel, Manwani also said many firms may have to adapt and establish partial or full manufacturing in the US given its predominance as a market, if things don't ease."Just as there has been talk of supply chain resilience, companies will now have to wake up to demand resilience. Companies will have to look at other markets like the Middle East, Europe, Latin America and Africa. It is an opportunity for Indian companies to go beyond the US and deepen their presence in other countries as well," another EMS executive said.
