Apple’s manufacturing of iPhones in India under the government’s smartphone PLI, remains firmly on track despite President Donald Trump’s latest push for a 100% tariff on semiconductor chips imported from countries that don’t produce, or plan to produce in the US. While the sweeping proposal has sparked uncertainty across the global tech supply chain, Apple will not be impacted, for now.
India’s Edge: A Competitive Advantage in a Shifting Landscape
The reason being that Trump’s tariff blueprint includes a crucial exemption for companies that are either manufacturing in the US or are in the process of establishing such operations. Apple squarely fits that description. The iPhone maker, under CEO Tim Cook, has announced a massive $100 billion addition to its US investments, taking its total planned spend to $600 billion over the next four years. This includes the American Manufacturing Programme (AMP), aimed at creating an end-to-end domestic silicon supply chain, from R&D to packaging.
The announcement will insulate Apple from policy shifts like the one Trump has indicated to pursue, and not disrupt the company’s manufacturing in India, where it produces 20% of iPhones.
Currently, the 50% duty which Trump has imposed on India is not applicable on smartphones, laptops, and servers, as these products are under the ongoing Section 232 investigation, ensuring that Indian electronics remain competitively priced in the US market.
India, in fact, holds an edge over China in this scenario. While both countries’ electronics are outside the current tariff net, China faces an additional 20% fentanyl-related import duty, effectively making Indian-made electronics more attractive. In the June quarter, India overtook China and Vietnam to become the top exporter of smartphones to the US, accounting for 44% of total imports in the segment.
Record Export Growth and Future Challenges
In fact, India’s electronics exports surged over 47% year-on-year to $12.4 billion in the April-June quarter, on the back of robust performance in the mobile phone segment, according to data from the India Cellular and Electronics Association (ICEA).
Mobile phones were the standout performer, with exports growing by 55% from $4.9 billion in Q1 FY25 to an estimated $7.6 billion in Q1 FY26.
The non-mobile electronics segment rose 37% to $4.8 billion from $3.53 billion in the corresponding period a year ago.
However, trade policy analysts have cautioned that if Trump at any point excludes India from the sops given to US firms which commit to make in America, then both Apple and India’s production-linked incentive scheme for smartphones would be severely hit.