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Apple's India iPhone Production Shielded from US Chip Tariff Threat
7 Aug
Summary
- Apple's India iPhone manufacturing unaffected by proposed 100% US tariff on imported chips
- India overtakes China as top smartphone exporter to US, aided by 20% fentanyl duty on China
- Apple's $600B US investment insulates its India operations from policy shifts
As of August 7th, 2025, Apple's iPhone manufacturing in India remains firmly on track despite President Donald Trump's latest push for a 100% tariff on semiconductor chips imported from countries that don't produce, or plan to produce, in the US. While this sweeping proposal has sparked uncertainty across the global tech supply chain, Apple will not be impacted, at least for now.
The reason is that Trump's tariff blueprint includes a crucial exemption for companies that are either manufacturing in the US or are in the process of establishing such operations. Apple squarely fits that description, having announced a massive $100 billion addition to its US investments, taking its total planned spend to $600 billion over the next four years. This includes the American Manufacturing Programme (AMP), aimed at creating an end-to-end domestic silicon supply chain.
Furthermore, India holds a competitive edge over China in this scenario. While both countries' electronics are outside the current tariff net, China faces an additional 20% fentanyl-related import duty, effectively making Indian-made electronics more attractive. In fact, India overtook China and Vietnam to become the top exporter of smartphones to the US in the June quarter, accounting for 44% of total imports in the segment.
