Apple’s India expansion may be impacted by US tariffs, as President Donald Trump on Friday announced that the company would have to pay at least a 25% tariff if iPhones are not made and sold within the country.
In a post on Truth Social, Trump said, “I have long ago informed Tim Cook of Apple that I expect their iPhone’s that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else. If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S. Thank your for your attention to this matter.”
Earlier on May 15, Trump had asked Apple CEO Tim Cook to limit Apple’s expansion in India.
“I had a little problem with Tim Cook yesterday. I said to him, my friend, I am treating you very good. You are coming up with USD 500 billion but now I hear you are building all over India. I don’t want you building in India. You can build in India, if you want to take care of India because India is one of the highest tariff nations in the world, so it is very hard to sell in India,” President Trump said while addressing a news conference in Doha, Qatar.
Recently, Apple increased its iPhone production in India by establishing new assembly plants in Tamil Nadu and Karnataka, with two facilities in Tamil Nadu and one in Karnataka. The company has partnered with manufacturers like Foxconn and Tata Group to set up these production units.
In the last fiscal year, Apple produced USD 22 billion worth of iPhones in India from the 12 months ending March 2025, marking a remarkable 60% increase from the previous year. Apple manufactured approximately 40-45 million iPhones in India during 2024, representing 18-20% of its total global output. Approximately 15 million of these were exported to the US, 13 million were sent to other international markets, and about 12 million were sold in India.
Apple manufactured approximately 40-45 million iPhones in India in 2024, accounting for 18-20 per cent of its global output. Of this, about 15 million were exported to the US, 13 million to other international markets, and about 12 million were sold in the Indian market.
By January 2025, Apple set an 11th consecutive quarterly revenue record in India, with iPhone sales estimated at USD 10 billion in 2024. India has become Apple’s fourth-largest market worldwide in 2024, after the US, China, and Japan.
As reported last month, due to rising trade tensions and the high reciprocal tariffs imposed by China and the US against each other, Apple strategically shifted all iPhone production for the US market from China to India.
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