America’s 50% tariff on India! Will iPhone exports be reduced? Know here details

This news is worrying for Indian exporters who send goods to the US, but it is also a good news for Apple and its American customers. In April, the US administration exempted smartphones, computers and other electronic devices from this tariff. This means that the price of Apple iPhones made in India (including the upcoming iPhone 17 series) will not be affected for the time being.

New Delhi: US President Donald Trump signed an executive order on August 6, imposing an additional tariff of 25% on goods coming from India. With the already applicable 25% duty, it has now become a total of 50%. This decision will come into effect from August 27, giving the two countries three weeks to negotiate. Trump has cited India's indirect support to Russia in the Ukraine war by buying oil from Russia as the reason behind this move.

iPhone gets 'temporary' relief
This news is worrying for Indian exporters who send goods to the US, but it is also a good news for Apple and its American customers. In April, the US administration exempted smartphones, computers and other electronic devices from this tariff. This means that the price of Apple iPhones made in India (including the upcoming iPhone 17 series) will not be affected for the time being.

Apple CEO Tim Cook recently said that most of the iPhones sold in the US are now made in India.

Exemption may end in future
This exemption is temporary and can end anytime. Trump has already said that "no country will be spared" and he has also hinted at imposing targeted tariffs on semiconductors. If this exemption ends in the future, the prices of 'Made in India' iPhones may increase in the US.

India is a major market for iPhone production
Apple has been reducing its focus from China and producing iPhones in India for the last few years. Apple started production in India to avoid the China-US trade war and to keep production costs low. India is playing an important role in the manufacture of the base model of iPhones, which are sold in the US. But now Apple's sales and production are on target due to the aggressive tariff policy of the Trump government. Trump has warned Apple to manufacture iPhones in the US to avoid tariffs. These policies may increase Apple's problems in the coming times.

Apple made a new plan
In view of the tough stance of the US government, Apple has announced to invest $100 billion in the US. This also includes the expansion of the glass factory located in Kentucky which will now make glass for iPhones and Apple Watches around the world. With this move, Apple is trying to satisfy the US government and avoid future tariffs.