iPhone exports: Govt thinks India has edge over China as it studies Trump tariff impact

Smartphones exports have seen a significant jump in the past few years thanks to global tech giants expanding their base in India.

The US-China tariff war is likely to give a boost to iPhone manufacturing in India, officials have said, as the Centre studies the impact of Trump’s tariff plan on pricing and exports on the Apple product, which has emerged as one of biggest Indian exports in recent months.

It may not be easy for Apple to manufacture iPhones in America, though US President Donald Trump’s tariff plan is geared towards bringing manufacturing back to his country, sources told Moneycontrol.

“The relevant line ministry is looking at is what will happen with the US asking Apple to shift manufacturing to the US. They are studying what might be the impact on iPhone prices, manufacturing as well as exports of the product,” one of the officials said.

“Apple could likely use India to manufacture for the United States as it is going to be cheaper than China,” a second official added.

Though Trump has kept smartphones, computers and other consumer electronics, out of the 10-percent baseline duty on all nations as well as from the higher reciprocal tariff on China, these products may face a 20 percent levy slapped on Beijing earlier.

While only reciprocal duties have been removed for Chinese electronic goods, India enjoys zero tariffs on all smartphones, including iPhones, laptops, and tablets exported to the US.

The US has taken a stringent view on Chinese imports by levying a so-called reciprocal tariff of 145 percent. China has hit American goods with a 125 percent tax.

"The scenario of Apple manufacturing from the US will take some time. It won't be in a hurry. The kind of issues that the US has had in manufacturing; it is not going to go away anytime soon. India is trying to be cheaper than China because of the tariff. It makes more sense for the US to manufacture from India than from China,” the second official said.

Trump has been lobbying for bringing tech manufacturing to the US and Apple’s iPhones, majorly assembled or made in Asia, have been cited as an example by the administration.

Smartphones exports have seen a significant jump in the past few years, as global tech giants expand their base in India and tie up with local players.

The country’s mobile phone exports soared to a record high, crossing the Rs 2,00,000-crore mark in FY25, data released by the India Cellular and Electronics Association (ICEA) has said.

Smartphone shipments were 55 percent higher than FY24, as Apple, Samsung and other global players stepped up manufacturing in India.

India’s overall mobile phone production reached an estimated Rs 5,25,000 crore in FY25, up from Rs 4,22,000 crore in the previous year.

A recent ICEA analysis also said India and Vietnam may get a 20-percent price edge over Chinese-made products in the American market, given steeper US tariffs on Beijing.