The iPhones made in India used to go to many countries, but they are now being sent almost exclusively to the US in an effort to bypass President Trump's tariffs on imports from China. According to customs data seen by Reuters, 97% of the iPhones made in India by Foxconn from March to May this year were sent to the US, up from 50% during the same period last year. The Foxconn exports to the US in May alone were worth almost $1 billion. Tata Electronics, a smaller supplier, sent 86% of the iPhones it made to the US.
Chinese exports to the US will be hit with a 55% tariff under a trade deal outlined last week, while Indian exports are tariffed at 10%, with talks underway to avoid a 26% "reciprocal" tariff that is currently on hold, reports Reuters. Apple announced plans in April to shift all production for iPhones sent to the US from China to India by the end of next year, Quartz reports. Trump, however, lashed out at the company after Foxconn announced plans to spend $1.5 billion on a new plant in India.
"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," Trump said in a Truth Social post last month. He threatened to slap an extra 25% tariff on iPhones made anywhere outside the US. Bloomberg notes that Apple and India's government are trying to get Trump to accept that iPhones will be made India, but they "may need to woo President Xi Jinping as well." China, viewing the move as a threat to its dominance in manufacturing, has barred some experienced employees from traveling to India. (More Apple stories.)
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