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Tariff trouble: Disruption in numbers – part 2

US tariffs on specific Indian imports could benefit other Asian and European countries

Published: Aug 1, 2025 11:50:03 AM IST
Updated: Aug 1, 2025 02:18:37 PM IST

Switzerland, Canada, and South Africa could dent India’s market share in America's imports of gems and jewellery, with the new US tariffs. Photo by Firdous Nazir/NurPhoto via Getty ImagesSwitzerland, Canada, and South Africa could dent India’s market share in America's imports of gems and jewellery, with the new US tariffs. Photo by Firdous Nazir/NurPhoto via Getty Images

With the US tariffs on Indian exports coming into effect today and with no clarity on any potential trade deal between the two countries, a Forbes India analysis shows that a number of developing Asian economies could benefit significantly from US tariffs on India.

As multiple sectors gear up for considerable disruptions and near-term price distortions, the analysis considered four sectors in which India is among the top 10 exporting countries to the US. For instance, with a doubling of India’s smartphone exports in 2024 compared to 2023, India accounts for more than a tenth of overall US smartphone imports, worth $52 billion. Some reports even suggest that India has overtaken China as the US’ top smartphone supplier in the June quarter of 2025, mainly due to Apple’s pivot away from China.

Also read: Tariff trouble: Disruption in numbers – part 1

However, the new US tariffs could put the sector under considerable pressure, thus opening up the space for other Asian economies like Vietnam and South Korea, which have a smaller but growing share in US smartphone imports. Meanwhile, trade negotiations between China and the US are still ongoing.

Similarly, although India’s pharmaceuticals sector is not yet under the ambit of these tariffs, several European economies, which collectively account for about a third of US pharma imports, could individually benefit if there is any impact on this sector in India.

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As far as US’ imports of gems and jewellery is concerned, Switzerland, Canada, and South Africa could dent India’s market share.

India’s shrimp exports, a sector that receives significant government support, could also lose its competitive advantage to countries like Ecuador, Indonesia, and Vietnam.

The advantages that other countries could gain would, however, be decided by the individual- and sector-specific tariffs that US eventually levies on these countries; some of them are still negotiating trade deals with the Trump administration.

India’s high import tariffs in the agricultural and dairy sectors, driven by domestic market concerns, has been a bone of contention with the US.

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