According to the Wall Street Journal, Apple is stepping up efforts to ship more iPhones to the United States to mitigate the impact of steep new tariffs on Chinese goods exerted by President Donald Trump.
The move is a short-term strategy, and the company seeks exemption from tariffs. Currently, Apple believes that the landscape is too volatile to make major changes to its global supply chain.
Tariff bite: iPhone costs $300
Trump’s updated tariff packages account for at least 54% of Chinese goods and import tax rates from India at 26%. According to estimates from TechInsights cited in the news report, a $300 hike can be added to the hardware cost of the current $550 iPhone 16 Pro. The model currently retails for $1,100.
“Apple can limit losses by importing Indian phones at half the height of tariffs from India,” WSJ noted.
Made in India could meet half of the demand in the United States
Bank of America analyst Wamsi Mohan quoted by WSJ said Apple expects to produce 25 million iPhones in India this year. While 10 million units are used for the domestic market in India, the remaining units can redirect them to the United States.
Say: “If Apple is going to redirect all of its Indian-made iPhones to the U.S., then this year it could meet 50% of the U.S. demand for the device.”
Trump doubles down on China
Despite the market shock, Trump remained firm on tariffs. On Monday, if China reveals its tariff plan on April 2, he threatens to impose additional taxes.
“Other countries have been abusing U.S. trade policies,” Trump said, adding that tariffs would generate “billions of dollars in revenue.” He also pushed for more manufacturing on American soil.
Production in India is flexible
Since 2017, Apple has gradually expanded its iPhone assembly business in India, working with partners to build not only older models but also the latest devices.
The shift has helped Apple diversify from China, reduce tariff risks and avoid import responsibilities sold in India, one of the fastest-growing smartphone markets in the world.
Thanks to the “substantial conversion” there, the company was able to mark India as its country of origin, from a range of parts to a smartphone in operation.
Vietnam faces similar tariff pressure
Vietnam is another Asian manufacturing hub for Apple, especially for AirPods, Apple Watch and iPads, facing 46% tariffs under Trump’s policy, almost as high as China.
But Trump has suggested a potential probation after talking to Vietnamese leaders, which suggests he might get a better deal.
Made iPhone in the United States? Impossible
Despite Trump’s push, it’s still incredible to move iPhone assembly to the United States. “The cost will be much more than the cost of paying tariffs,” analysts and suppliers told the news outlet.
Assembling iPhones requires a lot of labor, capable of high-speed, high-precision tasks – resources are more available and cost-effective in Asia.
