Apple is accelerating its iPhone exports from India to the US in a bid to dodge fresh tariffs imposed by US President Donald Trump on Chinese goods. With Apple shares plummeting 19% in just three days—the worst fall in 25 years—the move underscores the rising strategic importance of India in Apple’s global supply chain. While the shift is currently tactical, industry experts say India could emerge as a long-term production base for the tech giant amid deepening US-China trade tensions.
Tariff Heat Forces Apple’s Hand
Trump’s new tariffs—reaching as high as 54% on Chinese exports of technology—have put Apple in crisis mode, with estimated losses of $8.5 billion a year if exemptions are not provided. The company remains heavily dependent on China’s production, and it faces a $300 price boost per iPhone 16 Pro. In reaction, Apple has ramped up shipments from India, where retaliatory tariffs are 26%. Only days ahead of the April 5 tariff increase, five cargo planes loaded with iPhones and accessories were flown from India to the US in a stockpiling maneuver. This move underscores India’s increasing status as Apple’s backup hub during times of trade tensions. Indian officials said the company increased production to supply US demand and cushion the shock of abrupt cost increases. While still short of full decoupling from China, the action is a strategic rebalancing within Apple’s global supply chain.
India: From Backup to Backbone?
Apple’s production in India has jumped significantly since 2017, initially limited to older models. Now, top-end iPhones like the 16 Pro are also being assembled here. India’s cost and tariff advantage—combined with policy support and growing tech capacity—makes it a viable long-term manufacturing hub. It also helps that Vietnam, once Apple’s other alternative, now faces tariffs of up to 46%.
India’s edge goes beyond short-term economics. As one of the fastest-growing smartphone markets, it offers both manufacturing capacity and a huge consumer base. Apple already leads India’s $9 billion smartphone export sector to the US. If global tensions persist, India may become Apple’s go-to production engine for both domestic and global markets.
Apple’s bet on India isn’t just about avoiding tariffs. It’s a broader play for stability, scale, and strategic depth in an increasingly volatile global trade landscape.
