{"id":773,"date":"2025-08-01T12:54:16","date_gmt":"2025-08-01T12:54:16","guid":{"rendered":"https:\/\/tezgyan.com\/index.php\/2025\/08\/01\/trumps-25-tariff-threatens-apples-india-export-plans-iphone-prices-could-rise-business-news\/"},"modified":"2025-08-01T12:54:16","modified_gmt":"2025-08-01T12:54:16","slug":"trumps-25-tariff-threatens-apples-india-export-plans-iphone-prices-could-rise-business-news","status":"publish","type":"post","link":"https:\/\/tezgyan.com\/index.php\/2025\/08\/01\/trumps-25-tariff-threatens-apples-india-export-plans-iphone-prices-could-rise-business-news\/","title":{"rendered":"Trump\u2019s 25% Tariff Threatens Apple\u2019s India Export Plans; iPhone Prices Could Rise | Business News"},"content":{"rendered":"


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As per reports, nearly half of iPhones shipped to the US in recent months have been made in India, where Apple now holds a 55% share of the premium smartphone market.<\/h2>\n
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Apple iPhone <\/p>\n<\/figure>\n

New Apple iPhones To Get Costlier? <\/strong>Apple\u2019s ambitious bid to transform India into a key export hub for iPhones is facing a major roadblock, with former US President Donald Trump announcing a 25% tariff on Indian exports to the US, along with an additional penalty tied to India\u2019s defence and energy partnerships with Russia.<\/p>\n

The move, announced via Trump\u2019s Truth Social platform, threatens to derail Apple\u2019s ramp-up in India at a critical juncture \u2014 just as it was scaling up shipments to the US ahead of its fall iPhone launch. The development could force the Cupertino-based tech giant to revise pricing strategies or reevaluate its export mix.<\/p>\n

\u201cThe new 25% tariff on Indian exports to the US will certainly hit Apple\u2019s plans of making India a major iPhone export base for the American market,” Navkendar Singh, Associate Vice President, Devices Research, IDC India, South Asia & ANZ, told Moneycontrol<\/em>.<\/p>\n

\u201cThe US accounts for nearly 25% of Apple\u2019s iPhone shipments, which means about 60 million units annually. To meet this demand from India would require significant production expansion \u2014 a move that may now be reassessed,” Singh added.<\/p>\n

Apple has been steadily shifting iPhone production from China to India through its partners Foxconn and Tata Electronics, tapping into the country\u2019s potential as a manufacturing powerhouse. As per reports, nearly half of iPhones shipped to the US in recent months have been made in India, where Apple now holds a 55% share of the premium smartphone market.<\/p>\n

This very progress, however, may have triggered the backlash from Trump. \u201cThat rise in exports has clearly raised red flags for Trump, who views Apple\u2019s growing dependence on India with suspicion,” Neil Shah, Vice-President at Counterpoint Research, told Moneycontrol<\/em>.<\/p>\n

\u201cThis appears to be a move to pressure Apple into bringing more manufacturing back to the US. By imposing tariffs on India-made iPhones, Trump is signaling that even Apple won\u2019t get a pass unless it builds domestically,” he added.<\/p>\n

Trump had previously criticised Apple\u2019s India pivot. As Moneycontrol<\/em> reported, in May he claimed that Apple CEO Tim Cook told him there was no need to build factories in India unless they served the local market.<\/p>\n

\u201cIt\u2019s not just about trade\u2014Trump\u2019s tariff is a geopolitical lever,” Shah said. \u201cIt\u2019s a way to rebalance the US trade deficit with India while sending a clear message to global multinationals like Apple.”<\/p>\n

Apple now faces tough choices, as both India and China\u2014the company\u2019s two main production bases\u2014are under trade pressure. While Brazil offers an alternative through limited Foxconn capacity, scaling that up will take time.<\/p>\n

\u201cThese are the only viable options at the moment,” Shah explained. \u201cIn the near term, Apple will likely adopt a wait-and-watch stance. They might absorb the added costs, pass them to consumers, or bet on another policy reversal\u2014as has happened before with Trump.”<\/p>\n

According to reports, Apple may not raise prices immediately but could use the upcoming iPhone launch to reset its pricing strategy.<\/p>\n

\u201cComponent costs are already up\u2014especially with TSMC\u2019s 3nm chips getting pricier,” said Shah. \u201cIf Apple wants to maintain margins, it will either have to reduce costs elsewhere or do what Samsung did\u2014raise prices strategically.”<\/p>\n

India\u2019s rising importance in Apple\u2019s global supply chain is evident from export data. Apple shipped over $5 billion worth of iPhones from India in Q1 FY26 (April\u2013June), accounting for nearly 70% of total smartphone exports, as per preliminary data reviewed by Moneycontrol<\/em>. This is up sharply from around $3 billion during the same period last year.<\/p>\n

Overall, India\u2019s smartphone exports crossed $7 billion in the June quarter\u2014an over 40% increase from Q1 FY25\u2014driven by Apple\u2019s scale-up via Foxconn and Tata.<\/p>\n

Despite the tariff headwinds, analysts maintain that India remains critical to Apple\u2019s long-term plans. But for now, the tech major must navigate a complex mix of geopolitics, trade tensions, and pricing dilemmas as it prepares for its most important product launch of the year.<\/p>\n

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Aparna Deb<\/a><\/p>\n

Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More<\/span><\/p>\n<\/div>\n<\/div>\n

Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More<\/span><\/p>\n<\/div>\n<\/div>\n

Stay updated with all the latest business news, including market trends<\/a>,\u00a0stock updates<\/a>,\u00a0tax<\/a>, IPO,\u00a0banking finance<\/a>, real estate, savings and investments. Get in-depth analysis, expert opinions, and real-time updates\u2014only on News18. Also\u00a0Download the\u00a0News18 App<\/a>\u00a0to stay updated!<\/span><\/div>\n

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