Apple Boosts India iPhone Exports to USA, Bypassing China Tariffs

Apple has sharply increased iPhone exports from India to the United States, using India as a key manufacturing hub to avoid steep US tariffs on Chinese-made devices. According to customs data reviewed by Reuters, nearly all iPhones shipped by Foxconn from India between March and May 2025 went to the US, a major shift from previous export patterns.

iPhone Exports to the US Hit Record Highs

Between March and May, Foxconn exported $3.2 billion worth of iPhones from India, with an average of 97% of shipments going to the United States. This is a significant rise compared to the 2024 average of just over 50%.

In May 2025 alone, iPhone exports from India to the US totaled nearly $1 billion, making it the second-highest month on record, just behind March’s $1.3 billion.

India Becomes a Key Hub for Apple

Previously, Apple’s India-made iPhones were distributed across markets such as the Netherlands, the UK, and the Czech Republic. The recent change shows Apple’s strategy to rely more heavily on India to mitigate rising costs and trade barriers with China.

In just the first five months of 2025, Foxconn has already exported $4.4 billion worth of iPhones from India to the US, surpassing the entire 2024 total of $3.7 billion.

The move comes amid ongoing US-China trade tensions. President Donald Trump recently announced a new 55% tariff on Chinese goods, with plans to lower some levies if both countries agree. China has historically been Apple’s largest iPhone production base, making the tariffs a serious cost concern.

India, on the other hand, faces a baseline 10% US import tariff and is negotiating to avoid a proposed 26% “reciprocal” levy, which Trump paused earlier this year.

Apple Responds to US Pressure

Apple’s shift toward Indian manufacturing hasn't gone unnoticed. Trump criticized the company’s India expansion in May:

“We are not interested in you building in India… We want you to build here,” he reportedly told Apple CEO Tim Cook.

Despite the pushback, Apple continues to scale up in India. In March, the company chartered flights to transport iPhone 13, 14, 16, and 16e models worth $2 billion directly to the US. Apple has also pushed Indian airport authorities to reduce customs clearance time at Chennai airport from 30 hours to just 6 hours to speed up exports.

India’s Role in Global iPhone Supply Grows

Analysts expect Apple to continue shifting production to India. According to Counterpoint Research, 25% to 30% of global iPhone shipments in 2025 will be made in India, compared to 18% in 2024.

Other Apple suppliers are following suit. Tata Electronics, a newcomer to iPhone manufacturing, exported 86% of its output to the US in March and April 2025. In contrast, just 52% of Tata’s iPhone exports went to the US in all of 2024. Tata began exporting iPhones only in July 2024.

Indian Prime Minister Narendra Modi has promoted India as a global smartphone manufacturing hub. However, high import duties on components still make it more expensive to build phones in India compared to other countries.

Despite these hurdles, Apple’s increasing reliance on India signals a major shift in global supply chain dynamics and a clear response to geopolitical and trade tensions.

In Summary:

97% of iPhones exported by Foxconn from India between March–May 2025 went to the United States.
Apple exported $4.4 billion worth of iPhones from India to the US in the first five months of 2025.
Shift aims to avoid high US tariffs on Chinese-made phones.
Apple and partners like Tata are rapidly scaling up Indian manufacturing.
India could account for 30% of global iPhone production in 2025.

Source