New Delhi: Former US President Donald Trump is once again making headlines, this time by threatening a 25% tariff on iPhones that are not made in the United States. This includes iPhones assembled right here in India under Apple’s ‘Make in India’ program. With Apple increasing its manufacturing in India, many are now wondering: will this change Apple’s big plans for India?
Let’s break it down in a simple way.
Donald Trump says he wants Apple to make iPhones for the US market inside the US. He warned that if Apple keeps making iPhones in countries like India or China, he’ll impose a 25% import tax (tariff) on those phones when they are sold in the US.
It’s not just Apple. Trump also mentioned other companies like Samsung might face the same rule if they don’t manufacture in America.
This came after Apple CEO Tim Cook recently said that more iPhones sold in the US would soon be made in India. Apple has been trying to move away from China, and India is playing a big role in that shift.
Why Apple is Choosing India Anyway?
Even with Trump’s threats, India is still a smart choice for Apple. Here’s why:
Making an iPhone in India costs about $30, mainly because workers here earn around $230 per month, compared to about $2,900 in the US, the Indian government gives Apple special financial support through schemes like PLI (Production-Linked Incentives) to boost local manufacturing, while iPhones are assembled in India, many parts still come from countries like the US, Japan, South Korea, and Germany. Apple mostly earns money from its brand and software anyway.
So, India gives Apple big savings, which is very important for a company that sells millions of phones.
What Happens If the 25% Tariff Becomes Real?
Let’s say Trump’s idea becomes law, and Apple has to pay a 25% tax on each iPhone assembled in India. That means the cost per phone would go from $30 to about $37.5.
Sounds bad, right? But here’s the twist: even with the extra cost, it’s still way cheaper than assembling in the US, which costs about $390 per phone, just for the assembly!
If Apple moved production to the US, their profit per iPhone could drop from $450 to just $60, unless they raise prices a lot – which might hurt sales.
Apple’s entire supply chain – from screens to batteries – is built across Asia, especially in China. Moving everything to the US would cost billions, take years, and create many headaches.
So, even if Trump pushes hard, Apple may still prefer India. It’s cheaper, faster, and the infrastructure is improving every year.
My Opinion: India Still Wins (For Now)
As a young Indian and tech enthusiast, I think India will continue to be a major part of Apple’s future. Yes, Trump’s 25% tariff is a big deal. But the numbers speak for themselves, India is still the better option for now.
Also, Apple isn’t only making iPhones here for export. India is a huge market too, more Indians are buying iPhones than ever before. So having production close by is a smart move.
