As trade relations between the US and India remain strained, many tech companies are coming under pressure. Tariffs are being increased, production processes are being reconsidered, and risks are being reassessed. Apple is in a unique position. Despite rising tariffs on Indian goods, the company remains unaffected for the time being. The reason for this lies in a targeted exemption – and Apple's forward-looking production strategy.
On August 27, new US government tariffs on certain goods from India will go into effect. The current 25 percent will increase to 50 percent. This affects numerous products – but not all. Semiconductors and devices made from them, such as iPhones, remain exempt from the tariff increases. The first round of reciprocal tariffs, which went into effect on August 1, already excluded these product groups. The doubling announced now does not change this. This means that Apple is once again not subject to the new regulations. The exemption remains in effect and protects iPhone production from additional costs due to the tariffs.
Apple's relocation of production to India is paying off
In recent years, Apple has increasingly shifted its supply chain from China to India. The trade disputes between the US and China were among the decisive factors. Apple responded early to the risks of one-sided dependence and built alternatives. Partner companies such as Foxconn and Pegatron now operate large iPhone assembly facilities in India. Currently, all five iPhone 16 models are produced in India – both for the Indian market and for export, including to the US. This puts Apple not only well positioned to avoid regional tariffs but also to respond flexibly to geopolitical developments.
Customs relief is not permanently guaranteed
Despite the current exemption, the situation remains uncertain. The exemption from tariffs is only temporary. Changes could occur at any time – especially if US President Donald Trump has his way. He has already announced that no one will "get away with it." His administration is specifically working on new taxes on semiconductor products – a step that would have a direct impact on Apple devices.
Apple shows willingness to invest
To prevent further conflicts with the US government, Apple has announced extensive investments in its domestic market. At the beginning of the year, it had already pledged $500 billion for US production. Shortly after the announcement of the new tariffs, Trump announced another Apple investment: an additional $100 billion will be invested in a new production program in the US. Apple CEO Tim Cook will personally attend the official presentation of this program—a clear sign that Apple is striving for political stability.
Apple on a tightrope walk between advantage and danger
Apple is currently unaffected by the rising tariffs on Indian goods. The exemption for semiconductors protects the company from additional duties. At the same time, Apple is benefiting from the relocation of iPhone production to India – a strategic move that is now paying off. However, the situation remains fragile. The exemptions are not guaranteed in the long run, and political decisions could create new burdens at any time. Apple is trying to anticipate this with massive investments in the US. Whether this will be sufficient in the long run remains to be seen. The best products for you: Our Amazon Storefront offers a wide selection of accessories, including those for HomeKit. (Image: Shutterstock / Tomas Ragina)
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