Apple Faces Uncertainty As US-India Trade Dispute Escalates

Photo: apple.com

India-West News Desk

WASHINGTON, DC – A potential clash between the US and India over trade is now putting Apple and other tech giants in a difficult position. Trade negotiations between the two countries, which initially seemed promising, have become strained ahead of a crucial deadline on April 2, when reciprocal tariffs on India, imposed by President Donald Trump, are set to take effect. CNBC reported that the breakdown in talks could have far-reaching implications, particularly for tech companies heavily invested in the region.

Trump has long criticized India’s high tariffs, which remain among the highest in Asia. A growing U.S.- India trade deficit has added fuel to the fire, leading to increasing tension as the deadline approaches. CNBC reported that last week, India’s Commerce Minister Piyush Goyal made a hasty and unscheduled visit to Washington, offering further concessions, including slashing tariffs on key U.S. imports. In return, India hoped to secure an exemption from the proposed U.S. tariffs. However, sources close to New Delhi suggest that Trump’s trade team has yet to budge.

The tech sector is particularly vulnerable, with Apple in the crosshairs. CNBC reported that the company manufactures approximately 15% of its iPhones in India, and the additional tariffs could raise costs and make its products less competitive. Smartphones entering India currently face tariffs ranging from 16% to 20%, while Indian-made phones sold in the U.S. enjoy tariff-free status. With mounting pressure to keep costs down, Apple may have to reconsider its manufacturing strategy in India if tariffs continue to increase.

Apple has been a key player in India’s manufacturing boom, with CEO Tim Cook cultivating strong ties with Modi and opening four new retail stores in India. Apple’s success in the region, especially in diversifying its supply chain away from China, has been seen as a model for foreign investment in India, CNBC reported.

As tensions between the U.S. and India continue to escalate, Apple may need to rethink its strategy and increase its manufacturing footprint to other countries, CNBC speculated.