Apple is set to ramp up its iPhone exports from India to the United States as part of its strategy to counteract rising costs caused by US tariffs on Chinese goods. According to a report from The Wall Street Journal, the tech giant aims to shift production temporarily to India in light of the tariffs imposed on Chinese imports, which add $300 to the hardware cost of each iPhone.
The US government recently introduced a 34% tariff on Chinese goods, adding to the previous 20% duty. The increase has created a ripple effect, with China retaliating by placing tariffs on US goods, further intensifying the trade conflict. US President Donald Trump has warned of even higher tariffs—up to 50%—if China does not concede.
In contrast, goods from India face a much lower 26% tariff, making it a more cost-effective alternative for Apple. However, transitioning production from China to India is not without its challenges, as the shift would require significant supply chain adjustments. 
Apple’s Investment in India Pays Off
Apple has been working to expand its manufacturing base in India, with Foxconn and Tata Group overseeing iPhone production in the country. In January 2025, Apple exported iPhones worth a record ₹19,000 crore, marking the highest monthly export figure for the company. This was a 30% increase over the previous year, thanks to the Indian government’s Production-Linked Incentive (PLI) scheme, which has boosted local manufacturing efforts.
In the 10 months leading up to January 2025, iPhone exports from India surpassed ₹1 lakh crore, setting a new milestone for the company. To further support its export efforts, Apple will need to scale up its supply chain and manufacturing capacity in India, allowing it to meet the growing demand from the US.
Tariffs Drive Panic Buying in US Stores
As news of the potential tariffs spread, Apple customers flocked to retail stores in the United States, fearing that prices would rise significantly. Employees reported a surge in sales as consumers rushed to buy iPhones before the tariffs took effect. The situation has led to higher-than-usual foot traffic in Apple stores, with many customers expressing concern about the impending price hikes.
Despite the panic buying, Apple is preparing to handle the impact of tariffs by stocking up on inventory. The company is also planning to focus more on Indian-made iPhones to help mitigate the rising costs. Additionally, Apple has already started shifting some production to Vietnam, which also faces lower tariffs compared to China.
India’s Role in Apple’s Global Strategy
India’s importance in Apple’s global supply chain is growing, with more production being shifted to the country. Foxconn’s factories in India, which are responsible for manufacturing the iPhone, have proven instrumental in helping Apple meet both domestic and international demand. As Apple continues to diversify its production lines away from China, India’s role is likely to expand even further.
The global trade uncertainty caused by the ongoing US-China tensions is pushing companies like Apple to look for alternative manufacturing hubs, and India is emerging as a key player in this shift.
