Apple may look to shift more iPhone production to India as Trump tariffs threaten to bite

Apple

Apple is reportedly looking to shake up its iPhone supply chain once again. This time, according to a report by The Wall Street Journal, in response to a fresh wave of tariffs from President Donald Trump. The company plans to send significantly more iPhones to the US from India, according to The Wall Street Journal, as a way to soften the blow from import duties set to hit this month.

Tariffs on Indian imports are pegged at 26%, which — while steep— are still far more palatable than the 54% on Chinese goods, 46% from Vietnam, and 36% from Thailand. It does appear to be a short-term play for now.

The report notes that Apple isn’t looking to overhaul its global supply chain just yet, calling the current tariff landscape “too uncertain” to make sweeping changes. But shipping more India-made iPhones to the US could help cushion the financial hit, especially as the company hopes to negotiate exemptions like it did during Trump’s first term. Apple CEO Tim Cook had negotiated with Trump to get certain exemptions.

Apple has been steadily building up its manufacturing presence in India, with plans to make 25 million iPhones there in 2025. By shifting more of those units stateside, Apple could meet about half of US demand from India, claims the report.

Meanwhile, the tariffs could add serious cost. An iPhone 16 Pro that costs Apple $580 to build today could jump to $850 if current Chinese tariffs stay in place. Trump, for his part, has signaled even higher tariffs unless China removes its own 34% retaliatory tax.