Apple to Increase iPhone Shipments from India to Offset U.S. Tariffs:

Apple is preparing to shift more of its iPhone production from India to the United States in response to new import tariffs introduced by former President Donald Trump. According to a report by The Wall Street Journal, the company sees this as a temporary strategy to minimize the impact of increasing duties.

Currently, tariffs on Indian imports are 26%, substantially lower than the 54% applied to Chinese goods, 46% from Vietnam, and 36% from Thailand. These figures make India a more viable alternative in the short term.

Short-Term Play Amid Uncertain Trade Landscape

While Apple is not planning a complete overhaul of its global supply chain, it aims to strategically manage risks amid the volatile trade environment. The company views the current tariff policy as unstable and is hesitant to make long-term structural changes.

Apple CEO Tim Cook has previously negotiated tariff exemptions with the Trump administration and may pursue similar relief again.

India’s Growing Role in Apple’s Production Plans

Apple has been expanding its manufacturing operations in India, with production goals set at 25 million iPhones by 2025. By redirecting some of these India-made units to the U.S., Apple could meet nearly half of U.S. iPhone demand, according to the report.

Cost Impact of Tariffs on iPhone Pricing

The financial implications of continued tariffs are significant. For instance, building an iPhone 16 Pro currently costs Apple around $580. Under current Chinese tariffs, this cost could surge to $850 per unit. Former President Trump has indicated that tariffs may rise further unless China removes its 34% retaliatory tax.