iPhone users get a shock! What impact Trump's tariff warning will have on iPhone price and exports from India?

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Bad news for iPhone lovers: US President Donald Trump has clearly stated that if iPhones are not made in the US, Apple will have to pay 25% import duty (tariff). Trump's warning can have a direct impact on countries including India where Apple gets its iPhones made, especially in India under "Make in India". If this tariff is implemented, Apple's cost will increase and that burden will fall directly on the customers—which can lead to an increase in the price of iPhones by Rs 20,000–Rs 25,000.

Why can iPhone prices increase?

The main reason for the possible increase in the price of iPhones is the 25% tariff proposed by Trump. Trump says that iPhones sold in the US should be made in the US. But Apple currently manufactures in India and China to keep costs low. If heavy taxes are imposed on imports, Apple will have to manufacture in the US, which is expensive. This will have a direct impact on the price of the device.

What will be the impact on Apple's supply chain?

Apple has made India its major production center. Companies like Foxconn, Pegatron and Tata Electronics are assembling iPhones in India. In the second quarter of 2025, Apple's share in smartphone exports from India was 44%. If Trump's tariff policy is implemented, Apple's global supply chain will be affected and heavy taxes will have to be paid on iPhones made in India to sell in the US.

What is the political message in Trump's warning?

Trump wrote on his social media site Truth Social that he has clearly told Apple CEO Tim Cook—"iPhones that will be sold in the US should be made there, otherwise 25% tariff will have to be paid." This statement is not only a part of the trade policy, but is also being considered a part of the 2024 US election strategy, in which 'Made in USA' is being given priority.

What is the future of iPhone exports from India?

India now exports iPhones worth more than $22 billion every year to the US and other countries. Apple is making India a long-term manufacturing destination. However, if Trump's policy is implemented, iPhones made in India will be taxed in the US, which could hurt India's export growth.

Prakash Kumar Pandey

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