Apple increasingly relies on Indian production as Trump-era tariffs reshape global supply chain
By Business Desk
New Delhi | June 14, 2025
Apple’s contract manufacturer Foxconn exported an overwhelming 97% of its India-made iPhones to the United States between March and May 2025, as the tech giant recalibrates its global supply strategy in response to heightened tariffs and shifting geopolitical priorities, according to a report by Reuters.
The exports, valued at $3.2 billion during the three-month period, are part of a broader realignment that has seen India emerge as a critical manufacturing and logistics hub for Apple, supplanting other traditional suppliers in Europe and East Asia.
The total value of iPhone shipments from India to the U.S. from January to May 2025 stood at $4.4 billion, already surpassing the $3.7 billion recorded for the entire year of 2024. The proportion of Indian-made iPhones headed to the U.S. surged far beyond the 2024 average of 50%, signaling a strategic shift toward making India the cornerstone of Apple’s export operations.
A Response to Trade Tensions and Tariff Realignments
The marked acceleration in exports comes amid renewed pressure from U.S. President Donald Trump, who has publicly urged American companies to relocate manufacturing from Asia back to the United States.
“We are not interested in you building in India; India can take care of themselves. We want you to build here,” Trump said earlier this week, criticizing Apple’s India plans.
The administration recently announced a provisional trade agreement with China that would impose 55% tariffs on select Chinese goods, pending final approval. India, in contrast, will continue to pay a baseline tariff of 10%, alongside a 26% duty on specified categories, although both countries are currently negotiating a Free Trade Agreement (FTA) that could redefine these terms.
For Apple, this evolving tariff landscape has made India an increasingly attractive production base—not only as a hedge against China risk but also as a means of maintaining price competitiveness in its largest market, the United States.
Air Charters and Customs Reform: Speeding the Supply Chain
To mitigate delays and avoid backlogs, Apple has taken the unusual step of chartering dedicated cargo flights to transport India-made iPhones—particularly the iPhone 13, 14, 16, and 16e models—directly to the U.S., with an estimated $2 billion worth of devices shipped by air in March alone.
Additionally, the company has lobbied Indian airport authorities to reduce customs clearance time at Chennai International Airport, its primary export gateway. Clearance time, previously averaging 30 hours, has reportedly been cut to six hours, streamlining the outbound logistics chain.
Tata Electronics Also Scales U.S.-Bound Shipments
While Foxconn remains Apple’s dominant manufacturer in India, Tata Electronics, a newer player in Apple’s supply ecosystem, has also ramped up production. According to customs data cited in the report, 86% of Tata’s iPhones produced during March and April 2025 were also shipped to the United States.
Historically, Apple has sold nearly 80% of its China-made iPhones—roughly 60 million units annually—in the U.S. market. With escalating tariffs and increasing scrutiny over Chinese supply chains, Apple’s growing reliance on India represents a decisive evolution in its global production architecture.
India’s Growing Role in Apple’s Global Ambitions
India’s emergence as a key node in Apple’s supply chain reflects broader geopolitical recalibrations, as multinational firms seek to diversify away from China. While the Trump administration has made it clear that domestic production remains a political priority, Apple’s dual-track strategy of supply diversification and cost management appears to be gaining traction—albeit with friction.
Whether this India-first export model is sustainable amid political headwinds remains to be seen. But for now, Apple’s India-based manufacturing appears to be not just a hedge—but a critical asset in the battle for global tech supremacy.
