Donald Trump tariffs on iPhones: Future of iPhones and Apple’s made-in-India supply

A debate over the tariffs being implemented by the Donald Trump administration is heating up once again and this time around, the future of Apple iPhones is also at stake. But at the moment, Apple is getting a relief because of its Made-in-India iPhone supply strategy which ensures easier exports to the US. I believe, however, that things are not that safe in the long run, though. Apple may also be able to offset the impact of short-term shocks due to its India expansion, but with Washington considering introducing new tariffs on semiconductor chips, even the growth in iPhone production in India may no longer fully buffer American consumers against price increases. This leads me to both believe that Made-in-India iPhones are a ray of hope, but the possibility of pricier iPhones in countries like the US and others is, in fact, very likely.

Donald Trump tariffs on iPhones: Trump’s Tariff Policy and iPhones

• iPhones have always been under threat of increased tariffs by Trump's trade policies that have focused most on imports of technology and electronics.

• At this point, Apple supply chain has not been impacted directly with tariff actions providing temporary relief regarding the price of iPhones.

• An investigation on Section 232 of the Trade Expansion Act that is currently being conducted by the US commerce department, may change the situation.

• If new US tariffs on semiconductors are enforced, it would trigger cost increases across Apple devices.

• This may mean escalating costs to produce the entire line up of Apple products, including the new iPhone 17 Pro and the MacBook product line up.

Apple Made in India: iPhone supply

Apple is now an inseparable part of the Indian strategy and the locally made iPhones have become an important part in mitigating the supply risks. Apple contractors such as Foxconn, Pegatron and Tata are assembling huge quantities of iPhones to be used by the home and export markets. This transition will enable Apple to transport goods to the US in a manner that can ease the effect of tariffs related to China and the volatility of the same. Nevertheless, the advantage can be eroded in the future because semiconductors will still be imported largely by Taiwan, Korea, and even the US.

The Ripple Effect: Apple global pricing strategy

In the event that Trump imposes tariffs on semiconductors, the effects will not only go to the US. As Apple uses global pricing methods, the increase in cost in one geography tends to trickle into other regions. This might prompt American consumers to be exposed to a drastic increase in the price of iPhones and this might extend to other markets such as India.

iPhone 17 price in India

At this time, the iPhone 17 that will be launched in September 2025 seems comparatively secure against these new tariffs. Reports suggest the iPhone 17 price in India could start at Rs89,999, while the iPhone 17 Pro and Pro Max will carry even higher tags. In the US, again, prices can go up as a result of inflation and other costs of materials, but not as a result of tariffs-at least not yet. The more serious concern to both Apple and customers is the future tariff changes which can cause iPhone 18 and new models to be considerably more expensive.

The Made-in-India supply model which Apple is following is a smart move against future tariff uncertainty but it will not be a lasting solution as far as I can see. The threat of rising iPhone prices in the world thanks to Trump semiconductor tariffs is still on the table and in the future, the consumer base will be paying higher prices to get an iPhone. Until that happens, prospective customers considering the iPhone 17 line can rest assured, but the long-term viability of Apple pricing is uncertain in a politically tense trade atmosphere.

Disclaimer: The information regarding the gadgets/devices listed in the table and article has been sourced from various secondary sources. For detailed product specifications, please refer to the brand sources.