Apple Looks to India as US-China Tariff War Escalates

Apple Looks to India as US-China Tariff War Escalates

As tensions rise between Washington and Beijing, Apple appears to be reshaping its global supply chain strategy—placing a growing emphasis on India. The tech giant is reportedly planning to ramp up iPhone exports from India to the United States in a bid to offset the impact of higher US tariffs on Chinese imports.

India’s Growing Role in Apple’s Global Strategy

With the ongoing US-China trade war, Apple is seeking a short-term workaround to navigate rising duties. According to sources cited by the Wall Street Journal, the company is turning to India as a buffer zone while lobbying the US government for tariff exemptions on Chinese-made goods.

Despite these tactical shifts, Apple is not yet ready to overhaul its long-established manufacturing infrastructure in China, viewing the current situation as too uncertain for sweeping changes. Notably, China still handles around 90% of iPhone assembly.

Accelerated Exports from India

In a clear sign of urgency, Apple reportedly shipped at least five aircraft loaded with iPhones and other products from India to the US in just three days—right before the new tariffs took effect on April 2. The Times of India reports that the fast-paced operation was aimed at avoiding the latest round of reciprocal tariffs imposed on Indian goods.

Apple’s export value from India has surged sharply, reaching INR 20,000 Cr in March, nearly doubling from INR 11,000 Cr a year ago. The company’s facilities in both India and China preemptively ramped up shipments to the US to minimize potential losses.

Investor Anxiety and Market Volatility

Despite these proactive efforts, Apple is feeling the pressure on Wall Street. Fears of rising iPhone prices in the US have caused a spike in consumer demand, with many flocking to Apple Stores in anticipation of price hikes.

Meanwhile, Apple’s stock price has taken a hit, falling into a three-day selloff streak. The stock is currently trading at $184.27 on the Nasdaq, hovering just above its 52-week low of $164.08.

India: Apple’s Long-Term Bet

India may prove to be more than just a stopgap solution. Apple has been steadily expanding its manufacturing footprint in the country, with plans to assemble up to 32% of its iPhones by volume and 26% by value in India by FY 2026-27, according to projections.

To support this shift, Apple is leveraging a network of suppliers including Foxconn, Wipro Enterprises, Bharat Forge, and others for components and assembly services.

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Conclusion:
While the geopolitical climate remains uncertain, Apple is clearly betting big on India—not just to sidestep tariffs but as a potential long-term manufacturing hub. With rising exports, expanding vendor partnerships, and a strategic shift in production volumes, India could play a pivotal role in Apple's future beyond China.