As a result of Donald Trump’s heightened tariffs on Chinese goods, Apple is planning to shift more of its iPhone production to India, The Wall Street Journal reported, quoting sources familiar with the matter.
The tech giant is reportedly ramping up shipments of iPhones from India to the US as a short-term solution to offset the rising costs imposed by China duties while Apple attempts to win an exemption from President Trump’s tariffs.
The shift in production operations is believed to be Apple’s larger strategy to adapt to the evolving trade landscape under the Trump administration’s tariff policies.
As per the report, the company sees the situation as too uncertain to upend long-term investments in its supply chain.
Since 2017, Apple has worked with partners to assemble iPhones in India, starting with older models and gradually expanding to include the latest ones.
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The policy both addresses China’s risk and avoids import tariffs when selling in India, one of the world’s fastest-growing smartphone markets.
Meanwhile, TOI reported that Apple flew five full flights of iPhones and other products from India and China to the US in just three days in the last week of March, according to a senior Indian official.
The products shipped in March didn’t attract the new duty, which means Apple’s US warehouses are already stocked with enough units to handle demand for the next few months.
Trump’s tariffs on China
Donald Trump on April 2 announced “discounted” reciprocal tariffs on trading partners, including China, with 26 per cent tariffs on imports of Indian goods.
In a tit-for-tat move, the China Finance Ministry announced it will be slapping an additional 34 per cent tariff on all US goods from April 10.
After China’s retaliation, Trump further threatened to slap additional 50% import taxes on China, while readying negotiations with Japan and Israel, leaving markets struggling to grasp his intentions for his sweeping tariff plans.
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“If China does not withdraw its 34% increase above their already long term trading abuses by tomorrow, April 8th, 2025, the United States will impose ADDITIONAL Tariffs on China of 50%, effective April 9th,” Trump posted on social media.
Apple shares drop exponentially
Notably, the iPhone, which accounts for about 50% of Apple’s revenue, is primarily manufactured in China.
This heavy reliance has raised concerns among investors about the company’s exposure to tariffs, resulting in a 20% drop in Apple’s shares, marking their worst three-day performance in almost 25 years.
