Dealing with Trump’s tariffs: Apple exports 97.6% of iPhones to US from India to preempt higher tariffs on imports from China
Apple’s iPhone exports from India to the US constituted 97.6% of total iPhone exports in March 2025, rising from 81.9% in the December-February 2025 period. This shift aimed to avoid increased tariffs on Chinese imports.
According to an S&P Global Market Intelligence report quoted by ET, there was a substantial 219% surge in iPhone exports during March, as Apple expanded its Indian production facilities amid Donald Trump’s looming tariff announcements and trade uncertainties.
The three iPhone manufacturers in India are Tata Electronics, Pegatron and Foxconn Hon Hai.
The Trump administration implemented a 10% baseline tariff on imports from most nations, with additional reciprocal tariffs for countries having trade deficits with the US, notably China and Vietnam, which are major exporters of consumer electronics to America.
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China’s retaliatory measures resulted in reciprocal tariffs reaching 245% for certain items. However, consumer electronics, including smartphones and laptops, received exemptions from these reciprocal tariffs. The Trump administration plans to announce specific tariffs for these products in May.
Following this temporary relief, S&P reported that Apple intends to completely shift its iPhone production for the US market from mainland China to India by 2026, demonstrating increased confidence in South Asia as a manufacturing centre, despite possible obstacles.
“The move requires substantial investment and collaboration from contract manufacturers including Tata Electronics, supported by India’s production-linked incentive schemes. While India has streamlined foreign investment processes, actualising these investments could take months,” S&P said.
S&P indicated that increased iPhone manufacturing capabilities would strengthen India’s position in worldwide supply networks, particularly if a trade deal between the US and India materialises by the third quarter of 2025, notwithstanding possible issues such as workforce strikes.
The US market for iPhones significantly exceeds India’s export volume. According to S&P, whilst US iPhone sales reached 75.9 million units in 2024, Indian exports in March amounted to 3.1 million units.
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This indicates a requirement to increase shipments twofold, either through additional capacity or by reallocating domestic market-bound deliveries. Additionally, Indian production heavily relies on Chinese components, which constituted 71.3% of all Chinese shipments during the first quarter of 2025.
Tata Electronics’ new manufacturing unit in Hosur, Tamil Nadu will commence iPhone exports for Apple shortly. Additionally, Foxconn has made a $2.6 billion investment in a Bengaluru facility, scheduled to begin operations from May, which will considerably enhance Apple’s export capabilities.
To achieve the March objective, Apple primarily diverted shipments intended for other markets towards the United States.
Market research data reveals iPhone exports from India to the US increased significantly to 4.43 million units in March from 1.71 million units in February 2025. Apple’s exports to other regions showed varying degrees of decline during this period.