Apple is considering increasing its imports of iPhones from India as a way to avoid steep new U.S. tariffs on Chinese-made goods, The Wall Street Journal* reported.
The move comes after President Donald Trump announced a 54% tariff on products imported from China last week—part of an aggressive trade stance aimed at reducing reliance on Chinese manufacturing. In contrast, goods imported from India would face a lower 26% tariff under the proposed changes.
According to the report, Apple views the shift as a temporary workaround while it explores negotiations with the Trump administration for an exemption from the new duties. The tech giant remains reluctant to overhaul its heavily China-dependent supply chain in the immediate term.
The financial impact of the tariffs could be significant. Analysts estimate that if Apple continues importing iPhones from China, a single iPhone 16 Pro—currently costing about $550 to import—could now face an additional $300 in duties under the new policy.
Bank of America analyst Wamsi Mohan told the Journal that Apple is on track to manufacture 25 million iPhones in India this year, with around 10 million earmarked for the domestic Indian market. If the company redirected the full output to the U.S., it could meet roughly half of American demand for iPhones.
Apple has been gradually expanding its manufacturing footprint in India over the past few years, with support from key partners like Foxconn and Pegatron. The escalating trade tensions with China may now push the company to rely more heavily on that investment.
