Semicon Waived Off US Tariff, Its Foundational Role Reckoned

New Delhi: Semiconductors have been "spared" from US tariffs, a recognition of the foundational role they play in global supply chains, industry body IESA said on Thursday, but added that headline reciprocal tariffs do present a significant challenge to India's overall exports, given that the US is the largest trading partner for New Delhi.

US President Donald Trump announced sweeping reciprocal tariffs, redrawing the terms of America's engagement on global trade and economics on April 2, a date he dubbed - with much fanfare - as America's 'Liberation Day'. The US has slapped a 27 per cent tariff on imports from India.

Ashok Chandak, President of India Electronics and Semiconductor Association (IESA) said the speed and scale of tariff hikes could further slow global growth, create market uncertainty, and pressure businesses worldwide.

"While India is better positioned than many other economies, these tariffs can potentially impact domestic industries, disrupt trade flows, and squeeze profit margins," Chandak said.

As the geopolitical and economic landscape evolves, India must strategise swiftly, leveraging trade diplomacy, domestic policy shifts, and industrial resilience to mitigate risks and maintain its competitive edge in global trade.

Semiconductors and Pharmaceuticals have been spared from tariffs, recognising their foundational role in global supply chains and public health, Chandak noted.