Apple to Boost iPhone Production in India as U.S. Tariffs Hit China Harder

Apple is looking at India as a crucial site to grow its iPhone manufacturing amid Donald Trump's new tariff regulations, as reported by The Wall Street Journal on Tuesday.

US President Donald Trump has enacted new "reciprocal tariffs" that impact over 180 countries. India, currently generating up to 15% of Apple's iPhones, now encounters a 26% tariff imposed by the US. Although this is less than China's 54% (currently 104%) and Vietnam's 46%, it poses short-term challenges but may offer benefits in the long run.

Apple is especially at risk from these new tariffs. As per ET, the firm expects to export iPhones valued at $8-9 billion to the US during this fiscal year, after a phase of tax-free imports.

In response to the tariff, Apple has formulated a strategic approach. The organization plans to boost iPhone exports from India to the US to reduce the financial effects of higher tariffs on products made in China.

The United States remains an essential market for Apple's offerings, especially iPhones. The firm strives to keep existing consumer prices to safeguard sales levels and profit margins.

Apple's plan to shift 25 percent of its iPhone production to India by 2025 aligns with India's goals of becoming a global manufacturing hub. The Indian government is working diligently on a bilateral trade agreement (BTA) with the United States to boost economic cooperation and secure advantageous trading terms.