Apple boosts India base as Trump exempts smartphones, computers and chips from ‘reciprocal’ tariffs

Apple Inc is ramping up smartphone production in India reaching $22 billion worth of iPhones, or roughly 20 per cent of its global production, marking a significant shift away from its traditional manufacturing base, China.

A major part of the India-made iPhones are assembled at Foxconn Technology Group’s facility and the Tata Group’s electronics manufacturing facility. 

Apple’s shift to manufacturing in India, initiated in the wake of supply and production disruptions caused by Covid-19 lockdowns in China, has badly impacted production at Apple's largest plant in that country. 

Apple also exported iPhones worth $17.4 billion (Rs150,000 crore) from India during the fiscal year ended March 2025. The increase in iPhone shipments from India to the US was due mainly to President Donald Trump's "reciprocal" tariff policy, which badly impacted exports from China.

The Indian government also backed up with incentives for investment and manufacturing with the aim of making the country a global hub for electronics manufacturing.

The exemption of iPhones manufactured in India from reciprocal tariffs in the US also aided the continuing shift in Apple iPhone production to India. Besides, India accounts for 8 per cent of Apple’s global smartphone sales.

The office of US Customs and Border Protection has issued an update on the tariff policy clarifying that essential electronic products like smartphones, computers and chips will not be subject to President Donald Trump’s reciprocal tariffs. 

The customs has issued a list of HSN codes, covering a range of items such as smartphones, telecom gear, printed circuit boards, chip making machinery, recoding devices, data processors etc, that are excluded from the reciprocal tariff order.

The clarification was issued after technology giants like Apple that manufactures bulk of their products in China, raised concerns after Trump, earlier this month, imposed 125 per cent tariffs on imports from China.

Companies like Taiwan Semiconductor Manufacturing Co (TSMC), as also other chip makers like Nvidia that have announced major investments in the US, as also other major global chipmakers are expected to benefit from the tariff exemption.