Foxconn Sends 97% of India-Made iPhones to U.S. as Apple Responds to Trump’s Tariffs

Apple’s Strategic Shift: Navigating U.S.-China Trade Tensions with India-Made iPhones

Foxconn, Apple's largest manufacturing partner, has dramatically shifted its export strategy, sending nearly all its India-made iPhones to the United States in response to the latest U.S. tariffs on Chinese goods. Between March and May 2025, Foxconn exported $3.2 billion worth of iPhones from India to the U.S., accounting for a staggering 97% of the shipments in that period. This shift underscores Apple’s efforts to minimize the impact of rising trade tensions between the U.S. and China.

A Sharp Increase in Exports

The data highlights a major change in Apple’s supply chain approach. By May 2025, Foxconn's India-to-U.S. iPhone shipments had reached nearly $1 billion for the month, following a record peak of $1.3 billion in March 2025. These recent figures reflect a sharp increase compared to 2024, when only about half the India-made iPhones were exported to the U.S.

Cumulatively, the first five months of 2025 saw Foxconn ship $4.4 billion worth of iPhones from India to the U.S., a number that has already exceeded the $3.7 billion exported across the entirety of 2024. Previously, Indian-manufactured iPhones were distributed across multiple international markets, including the Netherlands, Czech Republic, and the United Kingdom. The refocus on the U.S. market underlines Apple’s response to shifting tariff landscapes.

The U.S.-China Trade Tensions

The supply chain pivot comes amid escalating U.S.-China trade tensions. On June 11, 2025, President Donald Trump announced that Chinese goods could face a tariff hike to 55% under a pending trade agreement, maintaining continuous pressure on companies dependent on Chinese manufacturing. Earlier tariffs had climbed into triple digits in some cases, driving global businesses to reevaluate their supply chains. For Apple, which has historically relied heavily on manufacturing partners in China, the rising costs have been a significant concern.

Despite these changes, both Apple and Foxconn have declined to comment publicly on the shift, leaving industry analysts to draw conclusions based on the data and recent geopolitical developments.

Diversifying Apple’s Supply Chain

Apple’s actions suggest a calculated strategy to reduce its dependence on Chinese manufacturing by diversifying its supply chain and investing heavily in India as a production hub. The shift marks a significant milestone in Apple's ongoing efforts to adapt to global trade pressures, particularly given the scale and complexity of its global operations.

India has emerged as a focal point for Apple's manufacturing expansion. The country offers not only a cost-competitive workforce but also a massive domestic market that aligns with Apple’s long-term growth strategy. Foxconn and other Apple suppliers have ramped up production in India over recent years, enabling a seamless transition of export operations amid trade policy changes.

Implications for the Tech Industry

The rerouting of iPhone shipments from India to the U.S. underscores several broader implications for global supply chains. For one, it highlights the growing importance of India as a manufacturing and export hub for high-end tech products. Foxconn’s operations in the region are a testament to India’s readiness to scale production for global markets.

Furthermore, Apple’s shift reflects a wider trend among multinational corporations aiming to insulate themselves from the uncertainties of U.S.-China relations. These moves could have ripple effects across industries as companies follow suit in diversifying their manufacturing bases.

A Win for India and International Trade

For India, the shift represents a significant validation of its efforts to attract global manufacturers. Exporting iPhones at this scale not only bolsters the country’s position within Apple’s supply chain but also reinforces its stature as a global player in tech manufacturing.

For Apple, this strategy seems poised to safeguard its ability to maintain competitive pricing for U.S. consumers despite escalating tariffs on Chinese goods. However, the longer-term impacts of moving substantial production capacity away from China remain to be seen, particularly on Apple's relationships with its longstanding Chinese supplier base.

Looking Ahead

Foxconn’s pivot to exporting nearly all of its India-made iPhones to the U.S. signals a decisive shift that could reshape global supply chain dynamics for years to come. It stands as a reflection of Apple’s adaptability in the face of heightened geopolitical tensions, as well as a testament to India’s growing prominence on the global stage.

While the broader impacts on Apple’s profitability and market share are yet to fully unfold, this strategic shift demonstrates how multinational corporations are rethinking their approach to manufacturing and trade in an increasingly unpredictable world.