Will Trump’s 25% tariff make your next iPhone more expensive? What Indian buyers must know

iPhones in India already cost up to 45% more than in the U.S.—and while President Trump’s 25% tariff doesn’t directly target phones sold domestically, analysts say the policy could indirectly keep iPhone prices high in India for years to come.

The tariff, announced by Trump as part of a broader trade crackdown on Indian exports, applies to products shipped from India to the U.S.—not to iPhones sold within India. But Apple’s growing reliance on India as a global manufacturing hub means the policy could have ripple effects for local buyers.

India-produced iPhones, especially base models, benefit from lower customs duties compared to fully imported Pro and Pro Max devices. The longer-term plan was clear: expand local assembly to reduce prices and supply chains costs. Trump’s tariff throws a wrench into that strategy.

“If Apple can’t profitably export from India to the U.S., its India expansion may slow,” analysts warn. That could shrink production volumes, raise component costs, and limit economies of scale—particularly for high-end models.

In 2025, Indian launch prices are steep:

• iPhone 17 Pro Max starts at ₹1.64 lakh vs. $1,399 in the U.S.
• iPhone 17: ₹79,900–₹89,990
• iPhone 17 Pro: ₹1.45 lakh

A typical Indian iPhone price includes:

• 15–22% customs duties
• 18% GST
• Apple’s 20–35% margin
• 3–5% retail markup
• Currency conversion impacts

The Trump tariff, though not a direct tax on iPhones in India, could destabilize the cost structure if Apple scales back Indian output due to weaker export economics. In that scenario, Indian buyers may face fewer discounts, slower price reductions, or even price hikes.

In the short term, the hit is strategic: Apple’s goal of making India its second global iPhone hub—next to China—may lose steam. In the long term, Indian consumers could pay the price in the form of persistently high retail tags, especially on Pro/Max models.