People look at iPhones at the Apple Fifth Avenue store in New York City, U.S., May 23, 2025. REUTERS/Adam Gray (adam gray/Reuters)
Tim Cook’s iPhone strategy faces fresh uncertainty after President Trump announced a 25% tariff on India.
Apple has spent years diversifying its supply chain away from China so it can now assemble enough iPhones in India to meet most U.S. demand, said Cook, Apple’s chief executive, in May.
That looked smart after Trump began imposing tariffs earlier this year. Today, iPhones imported from China face a 20% fentanyl-related tariff, while those imported from India face no tariff.
Smartphones face no levy when imported from India because they are temporarily exempt from so-called reciprocal tariffs. The carveout was granted pending a Commerce Department investigation to help establish what tariffs to levy on them.
Per the president’s Truth Social post, the new India tariff appears to still exclude smartphones. But when Commerce completes its probe, Apple could face additional levies on both Chinese and Indian imports. The wildcard is whether Trump “TACOs” again, striking a deal or delaying his proposed levies.
Apple is due to report quarterly results after Thursday’s market close.
