The Trump administration has announced a sweeping 25% tariff on all imports from India, effectively raising the total levy to 50%—the highest tariff rate imposed on any country to date.
The new tariff, set to take effect on August 27, is reportedly a response to India’s continued imports of Russian oil.
This move poses a serious challenge for Apple, which has been rapidly shifting iPhone production to India in recent years. The timing is especially critical as Apple prepares to begin shipping its iPhone 17 series in late August, just ahead of its expected launch event in early September.
Apple currently produces an estimated 14% of its iPhones in India, with plans to raise that figure to 25% by the end of 2025. This strategic shift is part of Apple’s long-term plan to reduce its reliance on Chinese manufacturing by building India into a major production hub.
The new tariffs could disrupt Apple’s supply chain, increase production costs, and potentially delay shipments for its upcoming iPhone lineup in the U.S. market.
In a related development, former President Trump also signaled the possibility of imposing a 100% tariff on all foreign semiconductor imports. However, companies that invest in building semiconductor manufacturing facilities in the United States would be exempt from this tariff. Additionally, smartphone, tablet, and laptop manufacturers could avoid these levies if they have already committed to shifting their production to the U.S.
The dual blow of increased tariffs on Indian imports and the looming threat of semiconductor duties is likely to reshape the global electronics manufacturing landscape. For Apple, these policy shifts could mean re-evaluating production strategies yet again as it navigates trade tensions and supply chain realignments.
With the iPhone 17 launch window approaching, all eyes will be on how Apple responds to this potential disruption and whether it can maintain its production timelines amid rising geopolitical and economic uncertainty.