The Trump administration is enforcing a new 25% tariff on all imports from India, which brings the total levies to 50%, currently making for the highest tariff rate on any country. The latest executive order will go into effect on August 27, with the reasoning behind the new levies based on India’s imports of Russian oil.
The move would be a major setback for Apple as Cupertino has been transitioning its iPhone manufacturing to India over the past years with plans to assemble all of its US iPhones in the country. The timing is specifically bad as Apple is expected to begin shipping its iPhone 17 series around that time ahead of their announcement in early September.
An estimated 14% of all iPhones are made in India, and the number is expected to reach 25% by the end of this year. Apple has been making strides in establishing India as its leading device manufacturing hub following its supply chain diversification away from China.
In related news, Trump also warned of a possible 100% tariff on all foreign semiconductor imports. Companies that invest in manufacturing facilities in the US would be exempt from the levies. Makers of semiconductor derivative products like smartphones, tablets and laptops would also be exempt if they have committed to or are in the process of moving manufacturing to the US.