Trump to Levy 25 PC Tariff on Imported iPhones
Trump in his Doha speech a few days back had asked Tim Cook to reshore the production of iPhones to the US.
Chennai: US President Donald Trump has warned Apple that iPhones will be charged with 25 per cent tariffs if they are produced in India or elsewhere. However, even with a 25 per cent tariff, imported iPhones will be cheaper for US customers than a domestically assembled device.
“I have long ago informed Tim Cook of Apple that I expect their iPhone’s that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else. If that is not the case, a Tariff of at least 25 per cent must be paid by Apple to the U.S,” Trump posted in Truth Social.
Trump in his Doha speech a few days back had asked Tim Cook to reshore the production of iPhones to the US. “I said, ‘Tim, we are treating you really good, we put up with all the plants you built in China for years. We are not interested in you building in India. India can take care of themselves'”, he had said.
While Apple sources iPhone parts from different parts of the world, most of the assembling happens in China and India. Despite dominating iPhone assembly, both countries receive only about $30 for a device valued $1000.
If the devices are assembled in the US, the cost of assembling each iPhone would jump from $30 to about $390 as the wages of $230 per month in India will go up 13-fold to $2900, finds GTRI.
Tata Electronics commenced iPhone assembly operations, including that of iPhone 16 and iPhone 16e models, at its Hosur facility a few days back, as per reports. Tata is also planning to increase the assembly lines in the facility.
The bulk of India-made iPhones are assembled at Foxconn Technology Group’s factory. Tata Electronics, which had bought Wistron Corp.’s local business and runs Pegatron Corp.’s operations in India, too is a key supplier. Apple assembled $22 billion worth of iPhones in India in FY25. END
