Apple Plans to Boost iPhone Exports from India to Offset US Tariffs on China:

Apple is preparing to increase iPhone exports from India to the United States as a short-term strategy to bypass mounting import tariffs on Chinese goods, The Wall Street Journal has reported. The decision follows the US administration’s imposition of a 34% tariff on goods from China, in addition to an earlier 20% duty.

This policy shift is part of Apple’s effort to manage rising hardware costs and preserve margins, particularly for its key product—the iPhone—which contributes to nearly half of its total revenue.

India Emerges as an Alternate Manufacturing Hub

India has become a more favorable export base, with the US imposing a relatively lower tariff of 26% on goods from the country. This makes Indian-made iPhones more competitive compared to their Chinese counterparts in the US market.

Apple partners such as Foxconn and the Tata Group currently produce iPhones in India. However, any increase in export volume to the US will require these manufacturers to scale up operations and strengthen their supply chains.

Escalating US-China Trade Tensions Impact Tech Giants

President Trump has warned of an additional 50% tariff hike if China does not reduce its own trade barriers. In retaliation, China announced a 34% tariff on US imports. This back-and-forth has intensified concerns among global investors.

Apple is particularly vulnerable due to its deep manufacturing ties with China. According to WSJ, the additional tariffs could increase the hardware cost of an iPhone by up to $300. This is significant, considering the current production cost is around $550, while the retail price stands at approximately $1,100.

Apple Shares Plunge Amid Uncertainty

Investor confidence has been shaken. In the past three trading days, Apple’s stock has dropped over 19%, marking its steepest three-day decline in nearly 25 years.

The tariff situation adds further pressure on Apple to diversify its production hubs and reduce its overreliance on China for assembly and component sourcing.