Business News: US President Donald Trump’s Tariff Policies May Affect Apple’s ‘Make in India’ Plan

Business News: President Donald Trump has announced a reciprocal tariff strategy, placing a 26% duty on imports from India and other countries. This move, part of a larger global trade war, has sparked widespread concerns among international firms, especially for Apple. Increased tariffs could result in a 30-40% increase in iPhone prices if passed on to consumers, making them much less affordable. As most iPhones are made in China, where tariffs are already at 54%, the added pressure may limit the demand. In response to the tariff news, Apple’s stock price has dropped 13% in the last five days, its worst performance since March 2020.

Trade Tensions Might Affect iPhone Manufacturing 

Apple has recently relocated 15% of its global iPhone manufacture to India, aiming to increase to 25% by 2025. However, the recently imposed 26% US tariff jeopardizes this plan, potentially impacting profitability and long-term investment. India is the largest trading partner of the US, accounting for 18% of overall exports, therefore a high tariff on electronic products could be damaging. The Indian government has disbursed over Rs 8,700 crore through the PLI (Production Linked Incentive) plan to stimulate electronics manufacturing, with Apple’s suppliers receiving more than 75% of the funds. Despite these efforts, rising trade tensions have placed doubt on Apple’s expansion plans in India, prompting the government to seek deeper engagement with IT giants such as Apple, Microsoft, and Google to strengthen India’s role in global supply chains.