From Beijing to Bengaluru: Apple's Strategic Pivot Amid Escalating U.S.-China Tariffs

April 14, 2025 – 2 min read

Author – Noor Alam

On April 9, 2025, President Trump signed an executive order imposing a 145% tariff on Chinese imports. In response, China announced it would raise tariffs on all U.S. goods to 125%, effective April 12, 2025.

These escalating tariffs have significantly impacted global supply chains. Because of this Apple has ramped up iPhone production in India, with plans to produce 25 million units in 2025, a 10 million increase from previous years. This surge aims to cover up to 50% of U.S. demand if redirected accordingly .

By shifting production to India, Apple dodged the 145% tariffs imposed on Chinese imports, opting instead for the comparatively lower 26% tariff on Indian goods. This strategic move helps Apple maintain more stable pricing for consumers in US.

Experts say that if Apple hadn’t moved production to India, iPhones could have become more than $1,000 more expensive. This means the price of an iPhone could have gone up to around $2,300. By making iPhones in India, Apple is able to avoid those big price increases.

Conclusion

Apple’s strategic pivot to India not only mitigates the financial impact of U.S.-China tariffs but also strengthens its global supply chain resilience. This move underscores India’s growing significance in the global electronics manufacturing landscape.

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