Dealing with Trump’s tariffs: Apple exports 97.6% of iPhones to US from India to preempt higher tariffs on imports from China

Apple’s iPhone exports from India to the US formed 97.6% of the total iPhone exports in March 2025, which increased by 81.9% in the period of December-February 2025. The purpose of this change is to avoid increased tariffs on Chinese imports.
According to an S&P global market intelligence report cited by ET, iPhone exports increased by 219% during March, as Apple expanded its Indian production facilities amidst Donald Trump’s Lump Tariff announcements and business uncertainties.
Three iPhone manufacturers Tata Electronics, Patron and Foxconn are honorable in India.
The Trump administration implemented 10% baseline tariffs on imports from most countries, with additional mutual tariffs for the US, especially China and Vietnam with additional mutual tariffs, which are the leading exporters of consumer electronics for the US.
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As a result of China’s retaliation, mutual tariffs reached 245% for some items. However, consumer electronics including smartphones and laptops were exempted from these mutual tariffs. The Trump administration plans to announce specific tariffs for these products in May.
Following this temporary relief, S&P reported that Apple has intended to fully move its iPhone production from the mainland China to India by 2026, which despite possible obstacles enhances confidence as a construction center in South Asia as a construction center in South Asia.
S&P said, “The move requires adequate investment and cooperation from contract manufacturers including Tata Electronics supported by India’s production-linked incentive schemes. While India has streamlined foreign investment processes, these investments may take real months,” S&P said.
The S&P indicated that increased iPhone manufacturing capabilities will strengthen India’s position in supply networks worldwide, especially if a trade deal between the US and India is materiality until the third quarter of 2025, despite the possible issues such as the workforce strike.
The American market for iPhone is much higher than the amount of India’s exports. According to S&P, the sale of US iPhone reached 75.9 million units in 2024, in March there was an amount of 3.1 million units of Indian exports.
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This indicates the need to increase the shipment twice, either through additional capacity or by recovering delivery. Additionally, Indian production depends a lot on Chinese components, which formed 71.3% of all Chinese shipments during the first quarter of 2025.
The new manufacturing unit of Tata Electronics in Hosur, Tamil Nadu will soon start exporting iPhone to Apple. Additionally, Foxconn has invested $ 2.6 billion in a Bengaluru facility starting operations from May, which will significantly increase Apple’s export capabilities.
To achieve the purpose of march, Apple diverted the motivated shipment intended to other markets towards the United States.
Market research data shows that iPhone exports from India to the US increased to 4.43 million units in March to a significant increase in February 2025 from 1.71 million units. In other areas, Apple exports appeared different degrees during this period.