Trump's 25% Tariff Threatens Apple's India Export Plans; iPhone Prices Could Rise
As per reports, nearly half of iPhones shipped to the US in recent months have been made in India, where Apple now holds a 55% share of the premium smartphone market.
New Apple iPhones To Get Costlier? Apple's ambitious bid to transform India into a key export hub for iPhones is facing a major roadblock, with former US President Donald Trump announcing a 25% tariff on Indian exports to the US, along with an additional penalty tied to India's defence and energy partnerships with Russia.
The move, announced via Trump's Truth Social platform, threatens to derail Apple's ramp-up in India at a critical juncture — just as it was scaling up shipments to the US ahead of its fall iPhone launch. The development could force the Cupertino-based tech giant to revise pricing strategies or reevaluate its export mix.
'The new 25% tariff on Indian exports to the US will certainly hit Apple's plans of making India a major iPhone export base for the American market," Navkendar Singh, Associate Vice President, Devices Research, IDC India, South Asia & ANZ, told Moneycontrol.
'The US accounts for nearly 25% of Apple's iPhone shipments, which means about 60 million units annually. To meet this demand from India would require significant production expansion — a move that may now be reassessed," Singh added.
Apple has been steadily shifting iPhone production from China to India through its partners Foxconn and Tata Electronics, tapping into the country's potential as a manufacturing powerhouse. As per reports, nearly half of iPhones shipped to the US in recent months have been made in India, where Apple now holds a 55% share of the premium smartphone market.
Moneycontrol.
'This appears to be a move to pressure Apple into bringing more manufacturing back to the US. By imposing tariffs on India-made iPhones, Trump is signaling that even Apple won't get a pass unless it builds domestically," he added.
Trump had previously criticised Apple's India pivot. As Moneycontrol reported, in May he claimed that Apple CEO Tim Cook told him there was no need to build factories in India unless they served the local market.
'It's not just about trade—Trump's tariff is a geopolitical lever," Shah said. 'It's a way to rebalance the US trade deficit with India while sending a clear message to global multinationals like Apple."
Apple now faces tough choices, as both India and China—the company's two main production bases—are under trade pressure. While Brazil offers an alternative through limited Foxconn capacity, scaling that up will take time.
'These are the only viable options at the moment," Shah explained. 'In the near term, Apple will likely adopt a wait-and-watch stance. They might absorb the added costs, pass them to consumers, or bet on another policy reversal—as has happened before with Trump."
According to reports, Apple may not raise prices immediately but could use the upcoming iPhone launch to reset its pricing strategy.
'Component costs are already up—especially with TSMC's 3nm chips getting pricier," said Shah. 'If Apple wants to maintain margins, it will either have to reduce costs elsewhere or do what Samsung did—raise prices strategically."
India's rising importance in Apple's global supply chain is evident from export data. Apple shipped over $5 billion worth of iPhones from India in Q1 FY26 (April–June), accounting for nearly 70% of total smartphone exports, as per preliminary data reviewed by Moneycontrol. This is up sharply from around $3 billion during the same period last year.
Overall, India's smartphone exports crossed $7 billion in the June quarter—an over 40% increase from Q1 FY25—driven by Apple's scale-up via Foxconn and Tata.
Despite the tariff headwinds, analysts maintain that India remains critical to Apple's long-term plans. But for now, the tech major must navigate a complex mix of geopolitics, trade tensions, and pricing dilemmas as it prepares for its most important product launch of the year.
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