The Blubber

Apple Looks to India as Trump’s Tariffs on China Push Costs Higher

Apple is reportedly ramping up its iPhone production in India as a way to sidestep the steep tariffs imposed by President Donald Trump on Chinese goods, according to The Wall Street Journal.

The potential shift would deal a one-two punch to China: not only could it lose its long-standing dominance as the primary manufacturing hub for Apple’s flagship products, but its geopolitical rival India could gain that business instead.

Newsweek reached out to Apple for comment but had not received a response at the time of publication.

Context: Tariff Turmoil Hits Apple and Markets

Trump’s escalating trade war with China has rocked markets and sent Apple’s stock into its worst three-day slide in 25 years. The administration announced a 34% retaliatory tariff on Chinese imports last week—on top of a pre-existing 20% levy—citing a crackdown on fentanyl as a justification. China responded in kind, slapping its own 34% tariff on U.S. goods.

Then on Monday, Trump raised the stakes again, warning that he would impose an additional 50% tariff if China didn’t reverse its latest measures. If enacted, U.S. tariffs on Chinese imports would reach a staggering 104%.

India, by contrast, faces a much lower 26% tariff—less than half China’s current level, and only a quarter of what China’s would be if Trump follows through.

How Much More Could iPhones Cost?

Under the current 54% tariff rate, the production cost of an iPhone 16 Pro—currently estimated at $550—could rise by $300. If the 104% rate is applied, that cost might balloon to around $600, potentially pushing retail prices even higher for consumers.

India’s 26% tariff, by comparison, would add a more modest $150.

Trump has repeatedly said companies could avoid these tariffs by manufacturing in the U.S., but labor costs remain a huge hurdle. TechInsights analyst Wayne Lam told the Journal that an iPhone that costs $30 to assemble in China would cost around $300 to build in the U.S.