&imwidth=800&imheight=600&format=webp&quality=medium "Donald Trump's tariff: What will happen to Apple's Made-in-India iPhone supply to US?")
The 50 per cent tariff, imposed by US President Donald Trump on India, will take effect on August 27. The tariff was announced in two tranches as a penalty for New Delhi for buying oil and weapons from Russia. India is one of the largest consumers of iPhones, designed and manufactured by Apple, a US-based company. Apple manufactures iPhones in India through third-party manufacturers.
Will the prices of Apple iPhones be impacted by Trump's tariffs on India? Here's the answer.
Apple is under tremendous pressure from Donald Trump to shift its manufacturing from Asia, including India. Apple produces most of its products in China. However, due to geopolitical conditions, Apple has been seeking to diversifyits manufacturingto more accessibleoptions like India and Vietnam. India has lately emerged as one of the top exporters of Apple iPhones.
Will Apple iPhone's prices increase?
Apple's exports from India will not be impacted by Donald Trump's tariff on New Delhi. This is because in April, the Donald Trump administration exempted smartphones, computers, and other electronic goods from reciprocal tariffs. Hence, devices that are based on semiconductors, including Apple iPhones, enter the United States without attracting additional tariffs announced by Donald Trump's administration.
The exemption was made because India contributes to Apple's iPhone supply. In the April-June quarters, 71 per cent of the iPhones sold in the United States were made in India. The figure is a massive jump from 31 per cent during the corresponding period last year. This shows that Apple has been focusing on investing in India, which has turned out to be a viable alternative to China.
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The Trump administration is reportedly mulling over bringing the semiconductor-based devices into the tariff net. If the exemption is withdrawn, India-made iPhones will become more expensive than their regional rivals, like Vietnam and China.
India has been buying Russian oil since early 2022 because of the discount Moscow has extended following the Western embargo on oil purchases over the Ukraine invasion. New Delhi says it has been doing what's good for its people.