In a broad policy shift, US President Donald Trump unveiled “reciprocal tariffs” targeting over 180 countries. Among them is India — now home to up to 15% of Apple’s iPhone production — which faces a newly imposed 26% tariff from the US. Although this rate is less severe than the 54% levied on China and the 46% on Vietnam, it is challenging in the short term but could reap benefits in the long run.
Apple stands to be one of the hardest hit by these tariffs. The company is projected to export $8-9 billion worth of iPhones to the US this financial year, after previously enjoying duty-free imports, ET reported.
With a 27 percent tariff now imposed, Apple has a defence mechanism. The company plans to speed up iPhone shipments from India to the US to reduce the impact of higher costs caused by tariffs on products coming from China.
Recently, ET reported that Apple shipped five planeloads of iPhones and other products from India to the US over just three days. The shipments, made in the final week of March, came ahead of a 10% reciprocal tariff imposed by the Trump administration, which took effect on April 5.
This is part of a broader strategy to avoid immediate tariff costs while still lobbying for tariff exemptions in the US.
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The US remains a key market for Apple products such as iPhones, and the company is trying to avoid passing on higher costs to consumers, which could affect demand and margins.Eyeing India
In the long run, the tariffs imposed on China are being viewed as stepping stones for India to position itself as a key manufacturing partner for global tech companies, including Apple.
Apple has already outlined plans to shift up to 25 percent of its iPhone production to India by 2025 — a move that aligns with New Delhi’s broader strategy to establish itself as a global manufacturing hub. The Indian government is also pushing to fast-track a bilateral trade agreement (BTA) with the US, aiming to strengthen economic ties and secure better trade terms.
However, the US has recently implemented a blanket 10 percent tariff on all imports, with additional country-specific levies. India has emerged as one of the hardest-hit nations, now facing a 27 percent tariff on its exports to the US — a rate higher than those imposed on key Asian competitors like Japan and South Korea.
High cost on consumers
Analysts at Rosenblatt Securities estimate that the high-end iPhone 16 Pro Max could shoot up to nearly $2,300 if Apple passes the added costs to consumers. That’s over Rs 1.9 lakh in Indian rupee terms.
India has rapidly become the company’s second-largest production hub, contributing 10-15% of global iPhone assembly with plans to up this to 25% by 2025. However, in the current scenario, it remains to be seen if that target will be achieved.