New Delhi11 hours ago
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On May 23, Trump had said that if Apple does not make an iPhone in America, then the company will be imposed at least 25% tariff.
Almost all the iPhones sold in the US are being made in India despite Trump’s threat to Apple. According to the Reuters report, 97% of all the iPhone exported by Apple from India between March and May 2025 have been sent to the US.
They cost $ 3.2 billion (Rs 27,000 crore). In May alone, about $ 1 billion i.e. 8,600 crore iPhones have been sent from India to America. That is, Apple is now making the iPhone exclusively for the US market in India.
From January to May 2025, the US has been exported to $ 4.4 billion (₹ 37 thousand crore) from India. This figure is more than 3.7 billion exports of 2024. By 2024, 50% of iPhones sold in the US were made in India.
Trump threatened to impose 25% tariff on Apple
Trump has threatened Apple to impose 25% tariffs on the social media platform Truth.
Donald Trump said on May 23 that the manufacturing of iPhone sold in the US should be in India or any other country, but in the US itself. He has told Apple’s CEO Tim Cook that if Apple does not make an iPhone in America, then the company will be imposed at least 25% tariff. Trump wrote on social media platform Truth,
I had long ago informed Apple’s Tim Cook that the iPhones that would be sold in the US would be manufactured in the US, not India or elsewhere. If this does not, Apple will have to pay at least 25% tariff.
On May 15, India will take care of itself
On May 15, Trump informed about the conversation with Apple CEO at an event with business leaders in Doha, the capital of Qatar.
Giving information about this conversation with Apple CEO, Trump said on 15 May that Apple would now have to increase production in America. I had some trouble with Tim Cook yesterday. I told him, Tim, you are my friend, you are bringing $ 500 billion, but now I am listening that you are production all over India. I do not want you to produce in India.
He further said that if you want to take care of India, then you can build in India, because India is one of the most tariff countries in the world. It is very difficult to sell in India and has offered us a deal. Under this, they are ready to recover any tariff from us. I told Tim, look, we tolerated all the projects you made in China for years, now you have to produce in America, we do not want you to build in India. India can take care of itself.
Apple’s focus on India, 5 points
- Supply chain diversification: Apple wants to reduce its dependence on China. Problems like Geopolitical Tension, Trade Dispute and Kovid-19 lockdown felt that it was not right to depend more on any one area. In this context, India is proving to be a low risk option for Apple.
- Government incentive: India’s Make in India Initiative and Production Linked Initiative (PLI) schemes provide financial assistance to companies to increase local manufacturing. These policies have encouraged Apple partners like Foxconn and Tata to invest more in India.
- Rising Market Possibility: India is one of the fastest growing smartphone markets in the world. Local production helps Apple to meet this demand more, as well as its market share, which is currently about 6-7%.
- Opportunity for export: Apple exports its 70% iPhone made in India, which gives the benefit of India’s low import tariffs compared to China. In 2024, iPhone exports from India reached $ 12.8 billion (about ₹ 1,09,655 crore). It is expected to increase further in the coming times.
- Skilled Workforce and Infrastructure: India’s Labor Force is behind China in terms of experience, but it is still improving a lot. Apple’s Partner like Foxconn, training employees to meet the production needs and expanding facilities like $ 2.7 billion (₹ 23,139 crore) plant in Karnataka.
Trump does not want Apple’s product to be made in India
US President Donald Trump does not want Apple’s product to be built in India. Last week, Trump told the company’s CEO Tim Cook that there is no need to install factories in India. India can take care of itself.
Trump gave information about this conversation with Apple CEO on Thursday (15 May) in the program with business leaders in Doha, the capital of Qatar. He had said that Apple will now have to increase production in America.
Despite this, Apple’s largest contract manufacturer Foxconn has invested $ 1.49 billion (about ₹ 12,700 crore) in India. Foxconn has invested this in the Yuzhan Technology (India) Private Limited of Tamil Nadu in the last 5 days through its Singapore unit.
