Apple Won't Be Impacted by India Tariff Increase

U.S. President Donald Trump is increasing the tariff on goods from India to 50 percent starting on August 27, but Apple's manufacturing in the country won't be affected.

apple india
Semiconductors and derivative products like iPhones are already exempt from the existing 25 percent reciprocal tariffs that are in place. According to CNBC, the executive order increasing the tariff rate doubles the 25 percent reciprocal tariff rate to 50 percent, and semiconductors will continue to be exempt.

Apple is already unaffected by the 25 percent reciprocal tariffs in India that were put in place on August 1, and it looks like that's not going to change if and when tariffs increase to the 50 percent mark later in August.

Apple has been shifting a significant portion of its manufacturing from China to India for supply chain diversification and because of U.S.-China trade tensions. Apple partners like Foxconn and Pegatron have established factories in India for assembling the iPhone, and all five iPhone 16 models are assembled in the country for Indian customers and for export to countries like the U.S.

The order that exempts Apple from paying reciprocal tariffs is temporary, and exemptions could change at Trump's whim. Trump has said that no one is "getting off the hook," and that his administration is working on specific semiconductor levies that could impact Apple devices.

Apple is working hard to convince Trump not to subject it to additional tariffs. The company promised to invest $500 billion in U.S. manufacturing earlier this year, and today, Trump is announcing another $100 billion Apple investment in the form of a new U.S.-based Apple manufacturing program. Apple CEO Tim Cook will be present for the announcement.

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Top Rated Comments

Blackstick Avatar
8 weeks ago
This freaking guy could negotiate a $25,000 car up to $33,000 and claim he got a great deal for our country ?
Score: 17 Votes (Like | Disagree)
Allen_Wentz Avatar
8 weeks ago
Trump playing with tariffs is all bad. Uncertainty around tariffs means manufacturers will wisely hoard components and materials, which is very inefficient; the opposite of just-in-time manufacturing. So manufacturers worldwide will be less efficient and everything will cost more than it otherwise would. Being in some different geographic location does not magically avoid the supply inefficiencies created by tariff blatherings.

Games and headlines like "Apple won't be impacted by..." are just verbiage. Reality is that we all pay more when tariffs are even discussed. Trump playing with tariffs is all bad.
Score: 15 Votes (Like | Disagree)
Harthag Avatar
8 weeks ago
The U.S. will never anytime soon have the manpower, infrastructure, employee willingness, or resources to domestically produce everything that this delusional clown hopes to achieve. It'll take several decades and by that time we'll have flip flopped through several political s**t-show regimes that ultimately will accomplish nothing.
Score: 12 Votes (Like | Disagree)
ForkHandles Avatar
8 weeks ago
Good luck America. Having an highly deceitful, autocratic government and a media that supports it must be really hard.

Best wishes from the uk
Score: 11 Votes (Like | Disagree)
senttoschool Avatar
8 weeks ago
How is anyone suppose to feel confident doing business when one company gets exemptions and yours don't?

Ok, I understand Apple is an important company. But companies who have a connection to Trump get exemptions but those who don't won't? That's how you destroy your business environment and lead to crony capitalism that is so often prevalent in 2nd/3rd world countries.
Score: 9 Votes (Like | Disagree)
jakey rolling Avatar
8 weeks ago
I'm too busy laughing at the repeated use of the word "reciprocal" while describing American tariffs. I'm not sure how gullible Americans actually are, but there seem to be a lot of people writing articles here who have very low opinions of the average American reader.
Score: 8 Votes (Like | Disagree)