Amid escalating U.S.-China trade tensions and rising import tariffs, Apple is reportedly planning to boost iPhone exports from India to the United States. According to The Wall Street Journal, the move comes as the tech giant looks for alternatives to its China-centric supply chain in response to increasing U.S. duties on Chinese-made products.
U.S. Tariffs on Chinese Goods Prompt Strategic Shift
The latest tariff hike has raised total duties on Chinese imports to 34%, following a previous increase of 20%. Further tariff hikes are possible, with former President Donald Trump warning of potential duties reaching 50% if negotiations with Beijing stall. For Apple, these added costs could mean an increase of approximately $300 per iPhone imported from China — a substantial jump from the average production cost of around $550.
India Emerges as a Key Export Hub for Apple
Apple has been manufacturing iPhones in India through partners such as Foxconn and Tata Group. With India currently facing a lower U.S. export tariff of 26%, the country is emerging as a more cost-effective export base in the short term. To reduce its exposure to Chinese tariffs, Apple may now accelerate production and exports from India.
Apple Stock Falls Amid Supply Chain Concerns
Investor confidence has taken a hit, with Apple’s stock dropping over 19% in the last three trading sessions — the company’s steepest decline in nearly 25 years. The sharp decline reflects investor anxiety over Apple’s heavy reliance on Chinese manufacturing facilities, despite its gradual diversification efforts.
Record iPhone Exports from India
India’s role in Apple’s global supply chain is growing rapidly. In January 2025 alone, Apple exported iPhones worth ₹19,000 crore from India, marking its highest monthly export figure to date. Between April 2024 and January 2025, Apple’s total iPhone exports from India exceeded ₹1 lakh crore, aided by the Indian government’s Production-Linked Incentive (PLI) scheme aimed at encouraging domestic electronics manufacturing.
Infrastructure and Sourcing Challenges Remain
Although Apple’s operations in India are scaling up, transitioning large-scale production from China is a complex, long-term challenge. Building comparable infrastructure, logistics networks, and a skilled labor force in India will take time. Industry experts note that while component sourcing and logistics capabilities are being developed in India, they remain in the early stages.
A Tactical Move Amid Trade Uncertainty
Apple’s increased focus on Indian manufacturing reflects a broader strategy among global tech firms to mitigate geopolitical risks. However, sources familiar with Apple’s supply chain stress that the shift is tactical rather than transformational. While India is becoming a strong secondary manufacturing base, completely replacing China in the near future is not considered realistic.
For now, expanding iPhone exports from India could help Apple reduce costs and manage political risk, offering some stability during a period of significant trade uncertainty.
