Apple takes action in response to Trump administration tariffs on China

Tech giant Apple announced on April 25 that it plans to have most of its iPhones sold in the United States assembled in India by the end of 2026 to avoid tariffs imposed on China (the company’s main manufacturing base, where about 80% of its total iPhones are produced annually).

Indian Prime Minister Narendra Modi has promoted his country in recent years as a smartphone manufacturing hub, but high tariffs on imported mobile phone parts highlight the fact that it is still too expensive for companies to manufacture in India.

However, Apple has already stepped up production in the South Asian country to offset the tariffs imposed by US President Donald Trump, shipping about 600 tons of iPhones worth two billion dollars to the US in March from India.

In April, the White House imposed a 26% tariff on imports from India, far lower than the 100% tariffs currently facing China. Since then, Washington has suspended most tariffs for three months, with the exception of those targeting Beijing.

Although Trump has been encouraging production in the US, economic analysts say that scenario is unlikely, as a locally-made iPhone would cost three times more than it does now. Karoline Leavitt, the White House press secretary, has cited a $500 billion investment plan as a sign that Apple wants a smartphone made in the US.