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yesterday

Apple Accelerates India iPhone Output as Trump Threatens 25% Tariff

Mixed messages from the White House over looming import duties have driven Apple to reinforce its India strategy with major new factory investment.

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The iPhone 16 and iPhone 16 Plus smartphones at an Apple store in New York on May 23, 2025.

Overview

  • iPhone exports from India to the US surged 76% in April to about 3 million units as Apple shifts assembly away from China.
  • Foxconn announced a $1.5 billion investment in a new India plant to boost local iPhone production capacity.
  • President Trump has warned of a 25% tariff on any iPhones not made in the US to pressure Apple into onshoring its flagship product.
  • Morgan Stanley analysts estimate that moving iPhone manufacturing to the US would raise unit costs by at least 35% and take several years to establish.
  • India’s Production-Linked Incentive scheme, lower labor costs and growing domestic market are key to Apple’s supply-chain diversification under US-China trade strains.