US President Donald Trump imposed a 25% tariff and unspecified penalties against India on Wednesday — set to be implemented from August 1. The impending duties will make several key exports costlier in the US and possibly disrupt the supply of Indian products. Washington is New Delhi’s third-largest investor, with $68 billion in cumulative FDI since 2002. Some key products however remain exempt.
The US administration had exempted several key products from reciprocal tariffs in April — providing major relief to companies such as Apple and Nvidia Corp. The announcement was made a few days after he announced sweeping levies against nearly all imports from more than 180 countries and remains in place till date. The newly announced 25% tariff will therefore have no effect on products such as iPhones that are currently assembled in India and exported.
India central to Apple strategy
According to data from Counterpoint Research, India supplied 71% of all iPhones sold in the US market between April and June this year. The number is a significant leap from the 31% recorded in 2024 and corresponds to a decline in shipments from China. Analysts told Reuters that manufacturing iPhones in India would continue to remain cost-competitive for Apple — despite the newly announced tariffs.
The tech giant has re-aligned its India exports to almost exclusively serve the American market in recent years — with nearly all the $3.2 billion-worth iPhones exported by Foxconn going to the US between March and May. An industry executive familiar with Apple’s strategy told Reuters that it was still “too early to say” if recent events or future changes in Trump’s stance would alter the company’s manufacturing plans in India.
Trump lashes out at Apple
Trump has repeatedly targeted Apple for making U.S.-sold iPhones outside the country by threats including company-specific tariffs, but hurdles like high costs, technological shortcomings, and legal issues have stood in the way.
In May, he recalled telling Apple CEO Tim Cook: “We put up with all the plants you built in China for years … we are not interested in you building in India, India can take care of themselves”.
