Apple is ramping up iPhone exports from India to the US in response to new tariffs imposed by US President Donald Trump, seeking to shield its margins without raising retail prices—for now. According to The Wall Street Journal, sources said Apple views this move as a temporary measure while it tries to secure an exemption from the tariffs, much like CEO Tim Cook did during the previous Trump administration.
The US will impose a 26% tariff on goods imported from India starting April 9, lower than the 34% on Chinese goods and the 46% on Vietnamese goods, making India a relative beneficiary in Apple's supply chain.
In late March, Apple reportedly sent five cargo planes loaded with iPhones and other products from India to the US in just three days, The Times of India reported, citing a senior Indian official. The urgency was driven by a new 10% reciprocal tariff that took effect on April 5.
Despite the increased cost pressures, Apple currently has no plans to hike prices in the US or other markets. "Factories in India and China and other key locations had been shipping products to the US in anticipation of the higher tariffs," a source told The Times of India. The report noted that Apple's US warehouses are now stocked with months' worth of inventory shipped under the old tax regime, temporarily shielding the company from cost increases.
India's growing role in Apple's supply strategy
The shift also underscores India's growing role in Apple's global supply chain. The Wall Street Journal, citing Bank of America analyst Wamsi Mohan, reported that Apple had planned to produce around 25 million iPhones in India in 2025, with about 10 million earmarked for the domestic market. Redirecting those exports to the US could fulfill as much as 50% of the demand for the American iPhone this year.
New tariff structures have made India an attractive export base. While iPhones shipped from China now face a 54% duty when entering the US, India-made iPhones incur only a 26% tariff, creating a compelling incentive to boost production in the South Asian nation. TechInsights estimates the tariff could add as much as US$300 to the hardware cost of an iPhone 16 Pro, which currently retails for US$1,100. Apple is betting that sourcing from India will help contain that hit.
India's growing importance as a production hub draws interest from other smartphone giants. A senior industry official told The Times of India that Apple may increasingly dedicate its India facilities to serve the US market, while China factories will handle Europe, Latin America, and Asia. The same official said this strategy could lead to a "major expansion" of Apple's footprint in India if the model proves sustainable.
Samsung is also reportedly evaluating similar shifts. With US$55 billion in exports from its Vietnam operations, the company might find it more economical to route shipments to the US through its factory in Noida, India—at least temporarily—until Vietnam can secure tariff relief from Washington. Vietnam has proposed zero-duty exports to the US, but negotiations are ongoing.
iPhone exports accelerated
The urgency behind Apple's export surge is reflected in trade data. iPhone exports from India nearly doubled in March 2025 to INR200 billion (US$2.22 billion), up from INR110 billion the same month last year, according to preliminary data cited in Indian media. For the full fiscal year 2024–25, India's iPhone exports reached INR1.5 trillion, a sharp jump from INR850 billion in fiscal year 2023–24. The final quarter alone saw exports soar to INR480 billion, up from INR285 billion year-over-year.
Despite Trump's push for a US manufacturing revival, analysts say relocating iPhone production to American soil remains economically unfeasible. According to India Briefing, in February, Apple committed to spending over US$500 billion in US manufacturing over the next four years, including buying chips from TSMC's Arizona plant, but large-scale iPhone assembly in the US remains out of reach.
As geopolitical tensions and trade disputes reshape global supply chains, Apple's maneuvering highlights how strategic flexibility—and India's rise as a manufacturing hub—could soften the blow of economic nationalism.
Article edited by Jerry Chen
