Apple to Import iPhones from India to Avoid China Tariffs

Apple Explores iPhone Imports from India Amidst US-China Trade Tensions

Apple is evaluating the possibility of increasing iPhone imports from India. This potential shift is a response to the 54% supplementary tariffs imposed on goods originating from China, as announced by U.S. President Donald Trump last week, according to a report by the Wall Street Journal.

Sources familiar with the matter indicate that this strategy is viewed as a temporary solution. Apple is simultaneously pursuing negotiations with the Trump administration to secure an exemption from these tariffs.

Tariff Implications and Cost Increases

A significant difference exists between the tariffs proposed for goods from different countries. The U.S. is considering a 26% tariff on products imported from India, while the current tariff on Chinese-made goods stands at 54%.

Without tariff adjustments, the cost of an iPhone 16 Pro could rise substantially. A model previously costing $550 to import could incur an additional $300 expense due to the tariffs.

India's Production Capacity

Apple is currently projected to manufacture 25 million iPhones in India this year. Of these, 10 million units are designated for the domestic Indian market.

According to Bank of America analyst Wamsi Mohan, importing all 25 million iPhones produced in India to the U.S. could fulfill approximately 50% of the American market demand.

Supply Chain Considerations

The company is hesitant to immediately overhaul its established supply chain, which is currently heavily reliant on China. A complete restructuring would require substantial time and investment.

Therefore, increasing imports from India represents a pragmatic, short-term approach to mitigate the financial impact of the new tariffs while longer-term solutions are explored.