US President Donald Trump has warned Apple that it will face a 25 percent tariff if it continues selling iPhones in the United States that are not manufactured domestically. Trump stated on his social media platform, Truth Social, that he expects all iPhones sold in the US to be built within the country, not in India or elsewhere.
India Becomes Key Manufacturing Hub for Apple
India has rapidly grown as a major production center for Apple’s iPhones. In the last financial year, Apple produced smartphones worth $22 billion in India, marking a 60 percent increase from the previous year. This expansion is part of Apple’s strategy to reduce reliance on China and address earlier tariffs imposed by the Trump administration on Chinese imports.
Apple Plans to Shift iPhone Production to India
Apple aims to manufacture most of its iPhones for the US market in India by the end of 2026. President Trump criticizes this move and urges Apple to focus on producing iPhones in the US instead. This comes amid ongoing global trade tensions and concerns about dependence on foreign supply chains.
Apple Commits to US Investment and Jobs
While Apple currently does not manufacture iPhones in the US, the company pledges to invest $500 billion in the country and increase domestic employment over the next four years.
Expansion of Apple’s Indian Suppliers
Apple’s manufacturing operations in India are centered on Foxconn’s factories in Tamil Nadu, Karnataka, and Telangana. Indian companies like the Tata Group have increased their involvement by acquiring operations from suppliers such as Wistron and Pegatron.
India’s Export Growth for Apple iPhones
India’s Electronics and IT Minister Ashwini Vaishnaw announced that Apple exported iPhones worth over ₹1.5 trillion (about $17.4 billion) in the financial year ending March 2025. This milestone shows India’s growing importance in Apple’s global production as it diversifies away from China.
