Foxconn Shifts India iPhone Exports to U.S. Amid Tariff Pressures

A sharp realignment is underway in Apple’s global supply chain — and it’s playing out between India, China, and the United States. According to fresh customs data reported by Reuters, a staggering 97% of the iPhones exported by Foxconn from India between March and May 2025 were shipped directly to the U.S. This marks a dramatic increase from the 2024 average of 50%, signaling Apple’s aggressive push to sidestep steep U.S. tariffs on Chinese imports.

The numbers tell a clear story. Foxconn exported $3.2 billion worth of iPhones from India in just those three months, with nearly all of them heading straight to American shores. May alone saw shipments nearing $1 billion, second only to the record-breaking $1.3 billion in March.

Neither Apple nor Foxconn commented on the development when approached by Reuters. However, the data highlights how Apple’s strategy has evolved from distributing India-manufactured iPhones to a range of markets — such as the Netherlands, the Czech Republic, and the UK — to focusing almost exclusively on the U.S.

Trump’s Tariff Hammer Rewrites Global Tech Trade

The shift comes amid escalating trade tensions. Earlier this week, U.S. President Donald Trump confirmed a massive 55% tariff on Chinese goods, including electronics, as part of a tentative trade agreement pending final approval. While India still faces a standard 10% U.S. import duty, it narrowly avoided a steeper 26% “reciprocal” tariff Trump had threatened — and temporarily paused — this past April.

In a blunt remark that underscores the administration’s stance, Trump publicly rebuked Apple’s India expansion in May. “We are not interested in you building in India, India can take care of themselves. We want you to build here,” he recalled telling Apple CEO Tim Cook.

Record iPhone Exports From India, Faster Than Ever

If Apple is concerned, it isn’t showing. In fact, the company has ramped up its India operations. In the first five months of 2025 alone, Foxconn exported $4.4 billion worth of iPhones to the U.S. — already surpassing 2024’s full-year total of $3.7 billion. The tech giant even chartered planes in March to airlift around $2 billion worth of iPhone 13, 14, 16, and 16e models to American markets, ensuring rapid deliveries despite the long-distance logistics.

Apple has also been working behind the scenes to speed up customs clearance at Chennai airport in Tamil Nadu, a vital hub for its Indian exports. The goal? Cut processing time from 30 hours to just six, minimizing delays and maximizing output.

Made-in-India iPhones Set to Take Bigger Slice of Global Shipments

Market analysts see this as more than a temporary workaround. Prachir Singh, a senior analyst at Counterpoint Research, predicts that India-made iPhones will account for 25% to 30% of Apple’s global iPhone shipments in 2025, up from 18% in 2024. It’s a significant milestone for India, which Prime Minister Narendra Modi has long pitched as a future smartphone manufacturing powerhouse.

Yet, challenges remain. While India offers scale and a growing manufacturing base, high duties on imported mobile phone components still make local assembly pricier than in many other countries.

Tata Electronics Enters the iPhone Export Race

Foxconn isn’t the only player. Tata Electronics — a relatively new entrant and part of India’s sprawling Tata Group — started exporting iPhones in July 2024. Between March and April this year, Tata shipped nearly 86% of its iPhone production to the U.S., up from 52% during 2024. Though May data isn’t available yet, the trend points to Tata quickly aligning with Apple’s U.S.-centric export strategy. The company, however, declined to comment.

What’s Next?

While Apple’s India shift is partly about avoiding Trump’s tariffs, it’s also about long-term diversification. The company has historically relied on China for over 80% of its iPhone production, with U.S. annual sales exceeding 60 million units. But given the fragile geopolitics and repeated tariff wars, India is emerging as Apple’s critical Plan B.