Apple’s iPhone business in India will remain completely unaffected by the upcoming increase in U.S. tariffs on imports from the country, according to a new report from CNBC. The tariff hike, which is set to take effect on August 27, 2025, will see rates on Indian imports double from 25 percent to 50 percent. The measure comes through an executive order signed by President Donald Trump as part of his broader trade policy shift. The move will incur trouble upon industries that rely heavily on imports, but the iPhone will escape these tensions due to a key exemption in the policy.
Despite the tariff hike from 25 to 50 percent, Apple’s India‑made iPhones remain unaffected for now
The crucial details rest in the fact that semiconductors and all associated products, which include smartphones, tablets, and others, that fall under the same category, are excluded from the higher tariff rate. The exemption is not new at all, as it was already present under the previous 25 percent tariff plans and remains intact even after the tax rate was doubled. Since the iPhone is built around advanced semiconductor technology, it falls directly into the product category, protecting Apple from any extra costs that might be incurred after the new rules.
Apple is also on the move, considering that the new tax policies are affecting its business a lot, and its current product strategy will play a role in protecting revenue in the next quarter. Over time, the company has expanded its manufacturing facilities in India, and it will help Apple manufacture all models of the forthcoming iPhone 17 lineup. However, these are mere speculations based on current trends, as the region is responsible for manufacturing all iPhone 16 models through Foxconn and Pegatron. India-made iPhone models cater not only to local demand but also to the United States.
However, Apple has to be vigilant in the future, as CNBC notes that the exemption is not guaranteed to last forever, and President Trump has already hinted that no company should consider itself permanently exempt from tariffs. The administration could introduce targeted levies oriented toward semiconductor-based products at any time, which would have an impact on iPhones and other high-tech devices. For now, though, Apple is safe and has secured a safe position for manufacturing iPhones in India.
On the U.S. front, Apple is also working to strengthen its position through major domestic investments, which will satisfy the administration and allow both parties to keep working together. The company announced a $500 billion commitment to U.S. manufacturing earlier this year, followed by an additional $100 billion program to expand production and innovation capabilities locally. These investments are seen as strategic moves to reduce supply chain risks and a gesture to the government that could influence trade policies in the future.
Follow Wccftech on Google to get more of our news coverage in your feeds.
