The Trump administration’s imposition of 50 per cent trade tariffs will take effect from today, thus affecting the prices of Indian goods in the US. While several sectors like textiles, sea foods and others are going to bear the brunt of Trump’s new tariffs, it would exempt the ‘made in India’ iPhones. The 50 per cent tariff on Indian imports, which was a move by the Trump administration in response to India’s continued oil trade with Russia, will not immediately impact the price of iPhones in the United States. While the new tariffs, effective from August 27, 2025, double the previous 25 per cent tariffs, a key exemption for electronics, including smartphones and computers, provides temporary relief for Apple and its American consumers.
Made in India iPhones exempted from Trump tariffs
The exclusion of tech products is a major win for Apple, which has recently rapidly expanded its manufacturing footprint in India. Apple has been shifting a significant portion of its global supply chain to India from China, primarily due to avoiding the geopolitical tensions between the US and China, as well as to avoid supply chain disruptions during pandemics like COVID-19.
According to a report by Counterpoint Research, India has become a production hub for Apple. The data indicates that 71 per cent of all iPhones sold in the US between April and June of this year were manufactured in India. The customs data show that almost all of the iPhones exported by contract manufacturer Foxconn from its Indian facilities are headed for the American market.
iPhones don’t have a secure future
Despite the current relief, the situation is not without future risk. The US Commerce Department is currently conducting a review under Section 232 of the Trade Expansion Act, which could pave the way for future tariffs on semiconductors. If these tariffs are imposed, they could have a ripple effect on Apple’s product line and global pricing strategy.
Hence, for now, the upcoming iPhone 17 series launch seems to be safe from exceptionally high prices. Leaks and rumours have hinted that the iPhone 17 series could see an increase in its base prices across the globe, with the vanilla iPhone 17 expected to start at Rs 89,999 this year. The Pro and Pro Max versions are said to come with even higher prices.
