Apple has diverted nearly all iPhones produced by Foxconn in India to the United States, aiming to reduce the financial hit from former President Donald Trump’s trade tariffs. Between March and May 2025, 97% of iPhones manufactured in India were exported to the US, compared to just 50% throughout 2024. The shift highlights Apple’s strategy to reroute its supply chain to countries with lower import duties than China.
In just five months of 2025, Foxconn shipped iPhones worth $4.4 billion from India to the US, surpassing the $3.7 billion recorded for the whole of 2024. Apple is accelerating Indian production and logistics to sidestep the harsher US import tariffs on China-made goods, particularly smartphones.
Tariffs Drive Strategic Realignment
Trump’s fluctuating tariff policies have pushed Apple to adjust quickly. Despite his criticism of Apple’s India operations and direct appeals to CEO Tim Cook to bring manufacturing to the US, Apple continues to rely on India, where costs are lower and export routes are more favorable.
The White House recently introduced a new 25% tariff targeting iPhones, allegedly in response to Cook not attending a Trump event. The administration later expanded the duty to cover all smartphones. Still, the tariff on Indian imports remains lower than China’s, which explains the redirection of supply chains.
India Gains Ground Despite Limitations
India faces high import duties on phone components, which raises production costs. Still, Apple and its suppliers continue expanding operations in the country. Tata Electronics, a smaller iPhone assembler, sent an average of 86% of its Indian output to the US during March and April. Apple’s long-term plan includes lobbying to streamline export logistics, including faster customs clearance at Chennai airport.
According to Reuters, March 2025 saw record exports of $1.3 billion worth of iPhones from India to the US, with May shipments nearing $1 billion. Foxconn’s US-bound shipments from India, once distributed globally, are now concentrated almost entirely on the American market.
Apple is unlikely to move iPhone production back to the US. The required infrastructure and workforce don’t exist domestically. Instead, India is set to account for as much as 30% of Apple’s global iPhone production in 2025.