What Trump’s 50% tariffs on India mean for iPhone 17 series buyers in the US as Apple CEO Tim Cook said that vast majority of iPhones sold in America are ‘made’ in India
US President Donald Trump has threatened to impose a 50% tariff on imports from India. This means the price of products imported from India to the US may see a price hike. However, products like smartphones, computers and other electronic devices are exempted from the reciprocal tariffs for now. This means, the cost of Apple iPhones (including the upcoming iPhone 17 series) manufactured in India will not be impacted by the proposed tariffs. The exemption offers temporary relief to US consumers and Apple, which has been expanding its manufacturing footprint in India to reduce dependency on China.Recently, Apple CEO Tim Cook announced that the majority of iPhones sold in the US “have a country of origin of India”. Speaking during the company’s second quarterly results, Cook told analysts: “In terms of the country of origin, it’s the same as I referenced last quarter. There hasn’t been a change to that, which is the vast majority of the iPhone sold in the US or the majority, I should say, have a country of origin of India”. It is important to also state here that the order that exempts Apple from paying reciprocal tariffs is temporary, meaning the exemptions could change in the future.
Trump raises India tariffs to 50%
Donald Trump signed an executive order on August 6 imposing an additional 25% tariff on most imports from India. This new tariff comes on top of the 25% tariff already announced earlier, bringing the total duties on Indian goods to 50%, if fully implemented. The order, signed on Wednesday, will come into effect on August 27, giving both sides a three-week window to negotiate. Trump cited national security concerns linked to India’s continued purchase of Russian oil. According to the executive order, the US sees Russia’s actions as a threat to national security, and India has been included due to its oil trade with Russia.Trump has also accused India of indirectly supporting Russia’s war in Ukraine by continuing large-scale oil imports from the country.
How Trump’s tariffs impact Apple
As mentioned above, Apple is currently not impacted by the proposed tariffs. The reason? In April, the US administration exempted smartphones, computers and other electronic devices from reciprocal tariffs. But there looms an uncertainty in the future as these exemptions are not permanent. If the Trump administration decides to end the current exemption, made-in-India iPhones can get costlier in the US. Trump has previously stated that no country will be “let off the hook,” adding that his administration is planning targeted tariffs on semiconductors — a move that could affect Apple devices in the future.
