In response to the U.S. government’s recent hike in tariffs on Chinese goods, Apple is reportedly planning to ramp up iPhone imports from India. According to the Wall Street Journal, the tech company is making this move as a temporary fix to avoid a steep 54% tariff imposed by President Trump’s administration on products coming from China.
Rather than immediately overhauling its well-established Chinese supply chain. Apple is exploring alternatives while simultaneously trying to negotiate an exemption with U.S. trade officials. Shifting production entirely away from China would take time and significant investment, given how deeply Apple’s manufacturing is tied to the region.
India, where the U.S. has proposed a relatively lower 26% tariff on imports, appears to be a practical short-term alternative. If Apple were to continue importing iPhones from China, the cost of an iPhone 16 Pro, previously imported at $550, could now rise by roughly $300 due to the added tariffs. That kind of price hike could hurt both Apple and U.S. consumers.
Currently, Apple is projected to manufacture around 25 million iPhones in India this year, with about 10 million reserved for the Indian market. If Apple redirects all 25 million units to the U.S., it could potentially fulfill around half of the American iPhone demand, according to Bank of America analyst Wamsi Mohan.
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Why Does India Make Sense for Apple?
Apple has been steadily increasing its manufacturing presence in India, working with partners like Foxconn and Pegatron to diversify beyond China — a move that aligns with both political and business interests. India offers lower labor costs, government incentives under the PLI (Production Linked Incentive) scheme, and a rapidly growing local market.
However, shifting large-scale production to India isn’t without challenges. Infrastructure, supply chain depth, and skilled labor at the scale China offers still need development. But Apple’s expanding footprint in India could also lead to job creation, tech upskilling, and a stronger global role for India in electronics manufacturing.
What’s Next?
Apple is expected to keep a close eye on trade negotiations and tariff developments in the coming months. While India serves as a short-term solution, it also sets the stage for a long-term shift, one that could eventually reduce Apple’s heavy reliance on China and strengthen its global manufacturing resilience.
