Apple Dodges Tariffs by Rerouting India-Made iPhones to the U.S.

Apple has realigned its production strategy, sending nearly 97% of iPhones manufactured in India to the United States between March and May this year, according to a Reuters report.

Commercially available customs data shows that this export surge from Foxconn’s Indian facilities is Apple’s tactical shift to avoid steep U.S. tariffs imposed on Chinese-made goods.

Between March and May 2025, Foxconn shipped $3.2 billion worth of iPhones from India—all but a sliver destined for the U.S.—in sharp contrast to a 50% U.S.-bound average in 2024. In March alone, Foxconn exported a record $1.31 billion worth of iPhones (models 13, 14, 16, and 16e) from India via cargo aircraft—equivalent to shipments in the prior two months combined.

These airlifts, involving six cargo planes, and expedited customs clearances—cutting processing time at Chennai airport from 30 to six hours—underscore Apple’s urgency to beat upcoming Trump-era tariffs.

This export adjustment is part of a broader strategy by Apple to reduce its dependency on Chinese factories. In the first five months of 2025, Foxconn shipped $4.4 billion worth of devices to the U.S.—surpassing all of 2024’s annual figures ($3.7 billion). Market analysts from Counterpoint expect that by the end of 2025, India-made iPhones will represent 25–30% of Apple’s global exports, up from approximately 18% in 2024.

Foxconn’s significant $1.5 billion investment in its Tamil Nadu subsidiary reinforces this shift, along with plans for new manufacturing capacity in Indian cities of Bengaluru and Hyderabad.

This pivot comes amid renewed threats from former President Trump, who has warned Apple against manufacturing iPhones abroad, particularly in India, and pushed for tariffs as high as 25% on foreign-made devices. Although some tariffs—such as the 26% plan targeting India—were briefly paused, electronics remain under scrutiny.

Trump called on Apple’s CEO to prioritize U.S. production, stating, “We are not interested in you building in India… we want you to build here,” and threatened visa levy compromises if this continued.