Apple May Boost iPhone Exports from India Amid Rising U.S.-China Tariff Pressure

Facing intensifying global trade tensions and new rounds of U.S. tariffs on Chinese imports, Apple is weighing a shift in its export strategy by sending more iPhones to the American market from India, according to a recent report by The Wall Street Journal.

The tech giant is said to be looking at India as a key alternative in the short term, as U.S. tariffs on Chinese goods continue to climb — with the latest increase bringing the total duty to 34 percent, following an earlier 20 percent hike. Additional tariffs could be on the horizon, with President Donald Trump warning of potential duties reaching up to 50 percent if no progress is made with Beijing.

For Apple, the cost implications are significant. Analysts estimate that the new tariff regime could add roughly $300 in hardware costs to every iPhone imported from China — a sharp jump, considering that the base production cost of an iPhone is around $550.

While the company has already been manufacturing in India through its partners Foxconn and Tata Group, the report suggests Apple may now ramp up those operations to cushion the tariff blow. India, which currently faces a 26 percent tariff on exports to the U.S., remains a more affordable route for now.

Investors on Edge as Apple Shares Slide

Apple’s market reaction to the trade pressure has been swift. Over the past three sessions, the company’s stock has fallen more than 19 percent — its worst three-day drop in nearly 25 years.

The stock plunge reflects concerns among investors that a prolonged U.S.-China standoff could impact Apple’s supply chain stability, especially as the company still relies heavily on Chinese manufacturing hubs for both components and final assembly.

Despite India’s growing role, moving large-scale production out of China will not be a simple task. Setting up comparable infrastructure, logistics, and skilled labor in India is a long-term process that could take years.

India’s Role Grows in Apple’s Global Supply Chain

That said, Apple’s India operations are expanding quickly. In January 2025 alone, Apple exported iPhones worth ₹19,000 crore, marking its highest-ever monthly export figure from the country. Between April 2024 and January 2025, the company shipped iPhones worth over ₹1 lakh crore from India — a milestone driven in part by the Indian government’s Production-Linked Incentive (PLI) scheme aimed at boosting domestic manufacturing.

Industry executives say that to support any further scale-up, Apple will need to expand its component sourcing and logistics capabilities in India — something that is already in the works but still in early stages.

A Calculated Bet in Uncertain Times

With Washington and Beijing locked in another round of tariff brinkmanship, Apple’s shifting focus to India signals a broader trend among global manufacturers looking to hedge against geopolitical risks.

Still, insiders say the move is more tactical than transformational — at least for now. “India is becoming a strong secondary base, but replacing China entirely isn’t realistic in the near term,” one industry executive familiar with Apple’s supply chain said.

For now, Apple’s India ramp-up may offer some relief — both financially and politically — as the company navigates one of the most unpredictable trade environments in its recent history.