How and why Trump's 25% Tariff on India will not apply to Apple iPhones manufactured in India, for now

Donald Trump announced that India will have to pay 25% tariffs on imports. Set to take effect from August 1, 2025, the tariff announcement has raised fresh concerns about a possible rise in iPhone prices in the US, given India’s growing role in Apple’s supply chain. A Bloomberg report, however, says otherwise. According to it, Apple iPhone exports to the US from India will remain untouched, for now. The reason? In April, the US exempted smartphones, computers and other electronic devices from reciprocal tariffs, a move that benefits tech companies like Apple and Nvidia.

India has rapidly expanded its iPhone production, accounting for more than a fifth of global iPhone production. The country has already surpassed China to become the top supplier of iPhones to the US. According to customs data accessed by news agency Reuters, iPhones worth $3.2 billion were exported from India by Foxconn between March and May 2025, with an average of 97 per cent heading to the US market.

Made-in India iPhones may become costlier if tariff exemption ends

Made in India iPhones are safe from the new tariffs for now. But the Bloomberg report adds that Apple iPhone manufactured in India may become costlier if in future the Trump administration ends the current exemption.

“A higher US tariff on India — if the exemptions go — could potentially make locally-assembled iPhones globally pricey compared to Apple products made in Vietnam or China,” said the report.

It must be noted here that the US Commerce Department is currently reviewing sectors deemed vital to national security, such as semiconductors, under Section 232 in the Trade Expansion Act. Until that review is complete, smartphones – including iPhones made in India - won’t face any import taxes.

However, experts expect that these reviews will lead to new tariffs on many foreign-made products. Trump is already using this law to tax steel and aluminum imports, which has affected even common household items like fishing reels and brooms. “Trump could also use 232 powers to levy duties on imports of iPhones into the US,” the Bloomberg report says.



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