Trump’s Apple tariff threat
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Manufacturing iPhones in India is still economically viable even if a 25 per cent tariff is applied, according to a recent report.
India is emerging after a brief conflict with Pakistan, with a ceasefire thankfully appearing to hold for now. This is welcome news for the business community and the public at large, many of whom too young to remember the adverse economic impact from previous conflicts.
India's path to becoming a clear-cut alternative to China isn't a guaranteed outcome, despite U.S. tariffs on Chinese goods. Bank of America expects iPhone costs could increase by only 25% if final assembly is moved to the U.
Even with a 25% tariff, the numbers still favor India. A $1,000 iPhone made in India would incur a $250 tariff. Add that to the $30 assembly cost, and the total is $280—still far cheaper than U.S. assembly alone.
India is weighing tariffs on some U.S. goods in retaliation against President Donald Trump's steel and aluminum levies. "The proposed suspension of concessions or other obligations takes the form of an increase in tariffs on selected products originating in the United States,
President Donald Trump said India has made an offer to drop tariffs on US goods, as the Asian nation negotiates a deal to avert higher import taxes.
U.S. President Donald Trump said on Thursday that India had offered a trade deal that proposed "no tariffs" for American goods, while expressing his dissatisfaction with Apple's plans to invest in India.
US tariffs on imported iPhones will increase prices due to higher duties and production costs. Relocating Apples supply chain from Asia to the US is impractical and expensive. India remains a vital manufacturing hub,
President Donald Trump said that India has offered to cut all its tariffs on US goods but downplayed any sense of urgency to reach a trade agreement with the world’s fourth-largest economy.