India-US tariff cuts set stage for $100 billion electronics trade

A new India-US trade deal to cut tariffs on both sides could open the door for around $100 billion in electronics trade, according to industry groups. After a phone call with Prime Minister Narendra Modi, US President Donald Trump said Washington would lower a key reciprocal tariff from 25% to 18%, while India would trim its own tariffs and ease non-tariff barriers on US goods.

Electronics manufacturers see the move as a signal that both countries are serious about a broader bilateral trade pact. Lower duties could make it cheaper for US firms to sell components and finished products into India, and for Indian companies to expand exports to the US, especially in phones, components, and other high-volume electronics. Industry executives say the impact will depend on how quickly both sides implement the cuts and whether the talks lead to a wider agreement covering standards, investment, and supply chain rules.