Foxconn Sends 97% of India iPhone Exports to US Tariff

 

 

June 13, 2025 — New Delhi

         Apple supplier Foxconn has sharply redirected its iPhone export strategy from India, sending nearly all shipments to the United States between March and May this year, according to customs data reviewed by Reuters. The move is widely seen as a response to high tariffs imposed on Chinese-made goods, as Apple accelerates efforts to diversify its manufacturing and reduce its reliance on China.

During the three-month period, Foxconn exported iPhones worth $3.2 billion from India, with an average of 97% going to the U.S. — a notable increase from the 2024 average of just over 50%. This pivot reflects Apple’s strategy to leverage its growing Indian production base to avoid escalating trade penalties under U.S. President Donald Trump’s tariff policies.

    Customs data indicates that May 2025 shipments alone were valued at nearly $1 billion, making it the second-highest month for India-origin U.S. exports, trailing only March 2025, when iPhone exports peaked at $1.3 billion.

Strategic Shift to Offset Tariff Pressures

           Apple declined to comment on the numbers, and Foxconn did not respond to a request for comment. However, analysts say the realignment of exports underscores the shifting dynamics in global electronics supply chains. Amid rising U.S.–China trade tensions, Apple appears to be fast-tracking efforts to expand Indian operations and use India as a primary manufacturing and export hub for the U.S. market.

      In March 2025, Apple chartered cargo planes to fly iPhone 13, 14, 16, and 16e models worth an estimated $2 billion directly to the U.S., bypassing seaborne routes to accelerate deliveries. The company has also reportedly worked with Indian airport authorities to reduce customs clearance times at Chennai International Airport—from 30 hours to just six hours—to facilitate faster outbound shipments.

       “This is a clear signal of India’s growing importance in Apple’s global production network,” said Prachir Singh, senior analyst at Counterpoint Research. “We expect made-in-India iPhones to account for 25% to 30% of global iPhone shipments in 2025, compared to 18% in 2024.”

Tariff Policy Drives Export Realignment

         Apple’s shift comes as the U.S. government, under President Trump, finalizes a plan to apply a 55% tariff on goods from China. Although the policy is still pending formal approval, the administration has already announced measures affecting electronics and consumer tech in prior months.

      While India, like most U.S. trading partners, is currently subject to a 10% baseline tariff, it was temporarily granted a pause on a proposed 26% “reciprocal” duty that was initially announced in April. Indian trade officials are negotiating to keep that exemption in place, hoping to encourage more U.S.-bound manufacturing from India.

       Still, high import duties on smartphone components in India mean that local production costs remain elevated compared to China or Vietnam. Yet, Apple continues to increase its manufacturing footprint in the country, which has also gained political support under Indian Prime Minister Narendra Modi’s "Make in India" initiative.

Tata Electronics Joins the Trend

          Tata Electronics, a newer iPhone manufacturing partner and part of India’s Tata Group, also ramped up exports to the U.S. Data shows that nearly 86% of its iPhone shipments in March and April went to the United States, compared to an average of just 52% in 2024. Tata began exporting iPhones in July 2024 and is expected to play a larger role in Apple's Indian operations moving forward. The company declined to comment on export figures.

Growing iPhone Exports From India

        In the first five months of 2025 alone, Foxconn exported $4.4 billion worth of iPhones to the U.S. from India — already exceeding the $3.7 billion it shipped during the entire calendar year of 2024. This rapid increase reflects both improved production capacity and Apple’s urgency in shielding its U.S. supply chain from future tariff hikes on Chinese goods.

       Historically, Apple has sold over 60 million iPhones annually in the United States, with about 80% of those devices previously assembled in China. The company’s shift toward Indian production could help rebalance that ratio in the coming years.

     While Apple has not issued public statements regarding its India-based manufacturing strategy, the data suggests the company is investing significantly in optimizing its global supply chain to reduce exposure to geopolitical risk and trade barriers.

         Analysts believe that if tariff tensions between the U.S. and China persist, Apple and other tech companies will likely expand their operations in India further — despite cost and infrastructure challenges. For now, Foxconn’s export numbers mark a milestone in Apple’s global production realignment and underscore India’s emerging role in global electronics manufacturing.