Apple is ramping up iPhone shipments from India to the US as it scrambles to avoid steep new tariffs on Chinese imports under Donald Trump’s latest trade crackdown.
The move is a temporary fix while Apple seeks an exemption from the new duties — something CEO Tim Cook successfully secured during Trump’s first term.
The shift was first reported by the Wall Street Journal
Trump’s new tariffs slap a 54 percent levy on Chinese goods, while India faces a lower 26 percent rate.
Analysts estimate the China tariffs could add $300 to the cost of producing an iPhone 16 Pro, which already costs Apple around $550 to make.
Apple now plans to produce 25 million iPhones in India this year, with up to 10 million originally meant for local sale. Redirecting those units could cover about half of US demand, according to Bank of America.
The tech giant has been expanding Indian production since 2017 — not just to dodge tariffs, but also to reduce its reliance on China and tap into India’s fast-growing smartphone market.
Despite growing investment in India and some US manufacturing, most iPhones are still built in China, where Apple’s supply chain is deeply entrenched.
The cost of making an iPhone 16 with 256 GB will go from around $580 to $850, experts explained to The Wall Street Journal (stock image)
Apple CEO Tim Cook is thought to be negotiating with President Donald Trump on concessions for the tech giant’s products. For now, Apple will import more iPhones from India. Imports from there have a lower rate than China
Donald Trump’s sweeping tariffs mean that any items importer from China come with a 36 per cent tariff
Apple shares have plunged 20 percent over three days — their worst streak in nearly 25 years — as investors fear fallout from the escalating trade war.
The president claims his tariffs will encourage domestic manufacturing by increasing the price of foreign products.
But since Apple would still need to import the raw materials used to make its devices, experts say there is not an economical way to make iPhones on US soil.
Moving iPhone production to America would be a, ‘massive, mammoth undertaking,’ senior research analyst at brokerage firm Rosenblatt Securities Barton Crockett told the WSJ.
‘It’s not clear you can make a competitively priced smartphone here,’ he told the outlet.
Currently the cost of assembly is around $30 in China, but this would soar by ten times if production moved to the US, Lam explained.
