Apple’s iPhone business in India remains untouched by the looming U.S. tariff hike on imports. Scheduled for August 27, 2025, these tariffs will double from 25% to 50% due to a shift in trade policy. However, iPhones, thanks to an exemption, sidestep these changes.
The exemption covers semiconductors and products like smartphones and tablets. This longstanding policy shields iPhones, which are rooted in semiconductor technology, from extra costs. Apple continues its strategic plan by expanding manufacturing in India, which is anticipated to cover all models of the future iPhone 17 lineup. The existing iPhone 16 models are already produced in India through Foxconn and Pegatron, serving both local and U.S. markets.
However, Apple must remain cautious. The current exemption isn’t set in stone, and changes could affect semiconductor-based products. But for now, Apple enjoys a secure position in India.
In the U.S., Apple is bolstering its domestic presence with substantial investments. The company committed $500 billion to U.S. manufacturing earlier this year, along with an additional $100 billion program to enhance production and innovation. These moves aim to minimize supply chain risks and maintain favorable trade relations.
