Trump Tariffs Create Uncertainty for Apple’s India Operations
President Donald Trump’s threat of a 25% tariff on iPhones assembled in India and sold in the US, announced on May 26, 2025, poses a challenge to Apple’s supply chain strategy.
The unpredictability of Trump tariffs, which can shift rapidly, complicates planning for multinationals like Apple, reliant on global suppliers from Japan, Taiwan, and China.
Apple could reroute assembly to other countries, lobby India for component tariff cuts, or absorb costs due to its 40% gross margins.
India, a key smartphone market, remains attractive for Apple’s expansion despite Trump tariffs.
For India, the focus should be on enhancing manufacturing competitiveness through cost reduction and innovation, rather than reacting to short-term US policy shifts, ensuring long-term growth in its electronics sector.
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