Trump’s trade war with China turned India into America’s new iPhone factory, and why 25% tariff danger cannot stop it.
Apple’s manufacturing partner Foxconn sent to almost everyone Iphone Between March and May, India was exported from India to the United States, 97% of $ 3.2 billion equipment was sent to American consumers, as technical veteran scrambles to navigate the growing trade war of President Donald Trump with China.According to the Reuters analysis of custom data, the dramatic change is a complete reversal from 2024, when only half of the iPhone exports of India moved to the US, and were distributed to European markets including the Netherlands, Czech Republic and Britain. Foxcon’s India-to-iPhone shipment has already reached $ 4.4 billion in the first five months of 2025, overtaking the entire 2024 a total of $ 3.7 billion.
Chinese smartphone exports plmets as a supply chain shift
The export of Chinese smartphones to the US decreased by less than $ 700 million in April, the Bloomberg data show, marking the lowest levels since 2011. Meanwhile, China’s phone constituent exports to India have almost quadrupled in the last one year as the manufacturers transferred the final assembly operation.Apple has invested heavily in Indian production capacity, in which Foxconn has developed a $ 1.5 billion Chennai plant and is lobbying to reduce customs withdrawal time by 30 to six hours. Tata Electronics, Apple’s second Indian supplier, is now 86% of its iPhone production in the US, above 52% in 2024.Business stress exposes Apple’s delicate balance act amidst avoiding punitive tariffs and maintaining cost -effective production, as the company historically depended on China for 80% of its annual 220 million iPhone units sold globally on China.
Apple dismisses Tram’s 25% tariff danger on India’s production
However, Apple does not prevent its efforts in India despite the danger of putting a “at least 25%” tariff on Indian-made iphones, unless the production goes to the United States. Trump told CEO Tim Cook in May, “We are not interested in building you in India, demanding domestic manufacturing, while Chinese -made iPhones face 55% tariff compared to India’s baseline 10% rate.The deadlock reflects broad stress as Trump pushes for domestic manufacturing while Apple pursues a cost -effective option for sugar production. Apple has promised $ 500 billion to US investment in four years and CEO Cook has personally contributed $ 1 million to Trump’s opening fund, yet the company expands Indian operations. Trump’s tariff threats also extend to Samsung and other smartphone manufacturers, the President warned that the levy could be effective by the end of June.Industry analysts hope that the iPhone manufactured in India for 25–30% of global shipment in 2025, compared to 18% last year. However, experts have warned that domestic American iPhone production remains unrealistic, “the Made” iPhone’s supply chain in the US may cost $ 3,500 due to complexity.
