America’s new ‘Risiproke Tariff Policy’ can have a big impact on the prices of iPhone. Actually, Donald Trump said that America will implement this policy from April 2, 2025. Trump says that its aim is to impose tariffs on those countries which impose more tax on American goods. India is also included in such countries, as it has been imposing heavy import duty on goods like electronics and automobiles for a long time.
‘Made-in-India’ will affect iPhone
Apple has increased its manufacturing operations rapidly in India. There are iPhone assembled companies in India, Foxconn, Patron and Tata Group. Here models like iPhone 16 Pro and 16 Pro Max are assembled, which are also exported along with the domestic market.
So far, iPhone made in India goes on duty in America, due to which Apple gets cost advantage. But under the new US policy, Indian electronics may impose 16.5 percent tariffs, which will be equal to the tax imposed on American electronics by India.
If this happens, this tariff may increase the export cost of Apple, which can reduce India as a manufacturing hub. If Apple does not put this increased expenditure on American customers, it can affect the company’s global profit margin.
What will be the effect on iPhone prices in India?
Although this tariff directly targets exports from India to America, its indirect effects can affect iPhone prices in India. Actually, this can increase the manufacturing cost. If Apple has to bear more expenses due to problems in tariff or supply chains, then it can increase prices to maintain global profits.
In addition, if the cost advantage of iPhone made in India is low, Apple can reduce its investment here, which can affect local production and prices. At the same time, if Apple has to import components or finished devices from other countries, where America has increased the tariff, then this expense can come to Indian customers.
Consumer Electronics Market in India
India is an important market for Apple, where demand is increasing due to the increasing strength of middle class. In the last few years, the Government of India had reduced custom duty on mobile phones, which reduced the prices of iPhone. But this trend can reversed with America’s new tariff policy.
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