Trump’s 25% Tariff Shock, Will iPhone Prices Soar in 2025?
US President Donald Trump on Wednesday announced a 25% tariff on goods imported from India, along with new penalties for buying oil from Russia. These new tariffs are set to come into effect from August 1, and industry experts believe the impact could be serious especially for Apple, which has been steadily shifting its iPhone manufacturing to India.
Why Trump’s Tariff Matters for Apple?
Apple has been working hard to make India its next big iPhone manufacturing hub, reducing its reliance on China. In fact, India recently overtook China to become the top supplier of smartphones sold in the US, thanks to Apple moving part of its production to the country.
But now, the newly announced 25% tariff threatens to disrupt these plans. Exporting iPhones from India to the US will become more expensive, and that extra cost might be passed on to US customers.
“Today’s sudden announcement of 25% tariffs on exports from India to the US will certainly hit Apple’s plan of making India a large export hub,” said Navkendar Singh, Vice President for Devices Research at IDC India, South Asia & ANZ. “To meet iPhone demand in the US from units assembled in India requires a big expansion in manufacturing, which will now be directly impacted.”
Will iPhone Prices Go Up in the US?
According to experts, iPhone prices in the US could increase if Apple chooses to pass on the extra cost to buyers. Exporting iPhones from India will now require Apple to pay 25% more in tariffs, making the devices more expensive in the American market.
There are only a few ways Apple could avoid this
Absorb the cost itself (which is unlikely for a company that closely watches its margins),
Raise the prices of iPhones sold in the US (more likely), or
Shift manufacturing again, possibly to the US or another low-cost country (which would take time).
For now, US customers may have to prepare to pay more for their next iPhone, especially if it was made in India.
Impact on Apple India Manufacturing Plans
Apple’s strategy in recent years has been to diversify its manufacturing locations, moving a significant part of its production from China to India. This helped India become a major exporter of iPhones, especially to the US, which alone makes up 25% of Apple’s iPhone shipments, or about 60 million units every year.
But now, with these new tariffs, the cost of exporting those phones from India to the US goes up significantly, putting pressure on Apple’s supply chain.
Prabhu Ram, Vice President of Industry Intelligence at CyberMedia Research, explained the situation:
“For Apple, this means higher costs on India-assembled iPhones exported to the US, which may reduce demand and push Apple to rethink its supply chain strategy. While long-term efforts to move some production to the US are ongoing, India still plays a critical role in Apple’s global plan.”
What Happens Next?
It’s still unclear how Apple will respond. The company may wait to see if the tariffs remain in place after the US elections, or if there’s room for negotiation with Indian trade officials. But in the short term, this unexpected tariff is likely to slow down Apple’s India expansion plans, and possibly make iPhones more expensive for American consumers.
Final Thoughts
Trump’s 25% tariff on India is more than just a political move—it has real-world consequences. For Apple, it may mean a pause in their India growth story. For US customers, it could mean paying a few hundred dollars more for the same iPhone. And for India, it puts at risk the major progress it has made in becoming a tech manufacturing powerhouse.
Stay tuned to VedKhabar.com for more updates on this developing story.