Trump’s tariff move could shift Apple, Samsung production further into India
India is poised to gain a significant edge in global smartphone manufacturing, as US President Donald Trump’s recent tariff announcements could push tech giants like Apple and Samsung to ramp up production within the country, reported timesofindia.indiatimes.com.
Higher US tariffs on China and Vietnam may boost India’s manufacturing base
Apple, which already dominates India’s $9 billion smartphone exports to the US, may find it more economical to expand operations in India, where the tariff rate stands at 27%, compared to a steep 54% for China. Currently, Apple manufactures iPhones through Foxconn and Tata Group as part of its ‘China+1’ strategy.
As the US continues trade talks to finalize tariff brackets, other nations such as Saudi Arabia, UAE, and Brazil—which fall in the lower 10% tariff category—may emerge as competing hubs. Still, industry experts suggest India retains an upper hand due to its growing production capabilities and its potential to enter a Bilateral Trade Agreement (BTA) with the US.
“India is now positioned as a trusted manufacturing ally for the US,” said a senior industry official, adding that corporate giants like Apple, Microsoft, and Google may play an advocacy role during negotiations with Washington.
India’s electronics sector is watching the tariff talks closely, with concerns that if India’s rate remains at 27%, manufacturers might consider shifting operations to more duty-friendly nations like Brazil, Turkey, UAE, and the Philippines.
However, India’s robust Special Economic Zones (SEZs), skilled labor, and ongoing trade discussions give it a distinct edge. For Samsung, the situation is especially critical as the US has imposed a 46% tariff on Vietnam, its largest export base. Industry analysts suggest this may tilt the scales in India’s favor.
“It’s now more profitable and easier for Samsung to scale up in India,” said a source close to the company. Internal deliberations are reportedly underway.
India’s ambitions to become a global manufacturing powerhouse—especially in the smartphone sector—could see major acceleration if it capitalizes on the shifting dynamics caused by the new US trade policies.
