Apple is reportedly evaluating an increase in iPhone imports from India as a potential strategy to skirt around newly-imposed U.S. tariffs on Chinese-made goods. This consideration comes after President Donald Trump announced a substantial 54% tariff increase on products imported from China, according to sources cited by The Wall Street Journal.
Currently facing significantly higher costs for devices built in China, Apple sees ramping up imports from India as a short-term alternative. At the same time, the company is working to engage the administration and seek an exemption, aiming to avoid a substantial overhaul of its heavily China-dependent supply chain.
These latest tariffs starkly contrast with the proposed 26% levy on goods coming from India, making Indian-made iPhones an attractive alternative for the time being. For context, the added tariffs mean significant increases to Apple’s import costs: for example, an iPhone 16 Pro model would incur around $300 more per unit if imported directly from China, up markedly from a pre-tariff import cost estimated at approximately $550.
Meanwhile, Bank of America analyst Wamsi Mohan noted that Apple plans to produce around 25 million iPhone units in India this year. Initially, about 10 million of those devices were intended for India’s local market. However, should Apple choose to direct all of those units to U.S. shores instead, they could potentially cover about half of America’s annual iPhone demand.
