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Trump has earlier threatened 25% tariffs on making iPhones in India.
Trump’s new tariff policy will not affect iPhones sent from India to America. The US President has announced a 25% tariff on India’s goods since 1 August 2025, but this tariff has been exempted from smartphones, computers, and other electronics.
The US Commerce Department is currently investigating some sectors such as electronics and semiconductors. Until this report is completed, smartphones will continue to be exempted from tariffs.
India has recently become the largest exporter of smartphones to America, overtaking China. In April-June this year, India was 44% of the imported smartphones in the US. At the same time, 78% of iPhones sold in America are being made in India.
Manufacturing smartphone in the country increased 240%
Vietnam’s stake in the smartphone exports to the US was also 30% more than China. This is the first time India has sent more smartphones to America than China. According to a canalis report, the manufacturing of smartphones in India has increased by 240% compared to a year ago.
78% iPhone Made in India sold in America
78% of iPhones sold in America are being made in India. According to market researcher Canalis, between January and June in 2025, India has a 23.9 million (2 crore 39 lakh) iPhone, which is 53% higher than the previous year.
According to research firm Cybermedia Research, the export of iPhone from India (iPhone sent abroad) has also increased to 22.88 million (2 crore 28 lakh) units. Last year, the figure of iPhone manufacturing in India was 15.05 million (1 crore 50 lakh) in the same period (January to June). That is, it has increased by 52% on an annual basis.
Talking about business, iPhones worth about Rs 1.94 lakh crore were exported from India in the first half of 2025. Last year, the same figure was Rs 1.26 lakh crore.
Trump threatened 25% tariff on making iPhone in India
Trump threatened Apple 25% tariff on social media platform Truth.
Donald Trump said on May 23 that the manufacturing of iPhone sold in the US should be in India or any other country, but in the US itself. He has told Apple’s CEO Tim Cook that if Apple does not make an iPhone in America, then the company will be imposed at least 25% tariff. Trump wrote on social media platform Truth,
I had long ago informed Apple’s Tim Cook that the iPhones that would be sold in the US would be manufactured in the US, not India or elsewhere. If this does not, Apple will have to pay at least 25% tariff.
Trump does not want Apple’s product to be made in India
On May 15, Trump informed about the conversation with Apple CEO at an event with business leaders in Doha, the capital of Qatar.
US President Donald Trump does not want Apple’s product to be built in India. Trump told Apple’s CEO Tim Cook that there is no need to install factories in India. India can take care of itself.
He further said that if you want to take care of India, then you can build in India, because India is one of the most tariff countries in the world. It is very difficult to sell in India and has offered us a deal.
Under this, they are ready to recover any tariff from us. I told Tim, look, we tolerated all the projects you made in China for years, now you have to produce in America, we do not want you to build in India. India can take care of itself.
Apple’s focus on India, 5 points
- Supply chain diversification: Apple wants to reduce its dependence on China. Problems like Geopolitical Tension, Trade Dispute and Kovid-19 lockdown felt that it was not right to depend more on any one area. In this context, India is proving to be a low risk option for Apple.
- Government incentive: India’s Make in India Initiative and Production Linked Initiative (PLI) schemes provide financial assistance to companies to increase local manufacturing. These policies have encouraged Apple partners like Foxconn and Tata to invest more in India.
- Rising Market Possibility: India is one of the fastest growing smartphone markets in the world. Local production helps Apple to meet this demand more, as well as its market share, which is currently about 6-7%.
- Opportunity for export: Apple exports its 70% iPhone made in India, which gives the benefit of India’s low import tariffs compared to China. In 2024, iPhone exports from India reached $ 12.8 billion (about ₹ 1,09,655 crore). It is expected to increase further in the coming times.
- Skilled Workforce and Infrastructure: India’s Labor Force is behind China in terms of experience, but it is still improving a lot. Apple’s Partner like Foxconn, training employees to meet the production needs and expanding facilities like $ 2.7 billion (₹ 23,139 crore) plant in Karnataka.
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