Tariffs on India won't impact Apple for now, but potentially could in the future

A sweeping tariff increase on Indian goods is set to take effect later this month, but Apple’s operations and shipments appear to be insulated from the fallout for now. President Donald Trump’s latest executive order, which doubles the tariff rate on select imports from India to 50 percent starting August 27, is part of a broader push to rebalance trade relationships. However, semiconductors and devices built from them, including iPhones, remain exempt.

This exemption is a crucial lifeline for Apple, which has steadily increased its manufacturing footprint in India in recent years. Through partners like Foxconn and Pegatron, Apple now assembles all five iPhone 16 models within the country. These units serve both local demand and are exported internationally, including to the U.S.

The decision to keep semiconductors off the tariff list shields Apple’s India-based production from any immediate disruption. But that protection may be temporary. Trump has signaled that exemptions could be reconsidered, with future tariffs on electronics or chip-based products still under discussion.

Behind the scenes, Apple is reportedly lobbying to maintain its current exemption status. The company’s broader trade strategy appears to hinge on a combination of manufacturing diversification and large-scale U.S. investment. That includes a $600 billion commitment to American manufacturing announced this year, which may help it stay in favorable standing as policies shift.

Despite the uncertainty, Apple’s calculated expansion into India continues to serve as a buffer against global supply chain turbulence and a hedge against the unpredictable nature of trade politics.