President Trump threatens Apple with 25% tariffs unless iPhone production moves to the USA. This challenges Apple's India expansion amid global trade tensions.

“It will also cut US trade deficit with India, a major concern for Trump. For every iPhone sold at around $1,000 in the US, India's share is less than $30. Yet, in trade data, the full $ 7 billion export value adds to the US trade deficit”, Srivastava says.

India has also become the world’s second-largest smartphone market after China, measured by volume. The production increase by Apple’s suppliers Foxconn and Tata Electronics in southern India has been the biggest success of Modi’s “Make in India” drive to create more manufacturing jobs in the world’s most populous country.

Amidst escalating tensions with the U.S. administration, Apple is reportedly planning to significantly ramp up iPhone production in India. A Wall Street analyst predicts that by fall 2025, up to 65% of iPhones could be manufactured in India.

Apple, Inc. (AAPL) stock has declined for seven straight sessions as tariff uncertainty remains an overhang. Even as CEO Tim Cook and his team focused on India as a production base as a workaround for the China tariffs,

Apple CEO Tim Cook had announced that Apple will source the majority of iPhones sold in the US from India in the June quarter,

Foxconn invests $1.5B to expand iPhone production in India, adding dorms for 30,000 workers, aiming to make 25M–30M iPhones in 2025 despite U.S. pushback.

Apple's WWDC 2025 kicks off on June 9th with a keynote at 10 AM PDT, showcasing iOS 19, iPadOS 19, macOS 16, and more. The conference will feature over 100 technical sessions and a special in-person event at Apple Park.