Will Donald Trump's reciprocal tariff make iphone expensive?
America's new 'reciprocal tariff policy' can have a big impact on iphone prices. In fact, donald trump said that the US will implement this policy from april 2, 2025. trump says that its purpose is to impose tariffs on countries that impose high taxes on American goods. india is also one of such countries, as it has been imposing heavy import duties on goods like electronics and automobiles for a long time.
'Made-in-India' iphone will be affected
apple has rapidly expanded its manufacturing operations in India. The companies that assemble iPhones in india are Foxconn, Pegatron and Tata Group. Models like iphone 16 Pro and 16 Pro Max are assembled here, which are exported as well as in the domestic market. So far, iPhones made in india go duty-free to the US, giving apple a cost advantage. But under the new US policy, indian electronics may face a 16.5 percent tariff, which will be equal to the tax imposed by india on American electronics.
If this happens, this tariff may increase Apple's export cost, which may reduce India's advantage as a manufacturing hub. If apple does not pass on this increased cost to American customers, it may affect the company's global profit margin.
What will be the effect on iphone prices in India?
Although this tariff directly targets exports from india to the US, its indirect effects can affect iphone prices in India. Actually, this can increase the manufacturing cost. If apple has to bear more expenses due to tariffs or supply chain problems, it can increase prices to maintain global profitability. In addition, if the cost advantage of iPhones made in india is reduced, apple may reduce its investment here, which may affect local production and prices. At the same time, if apple has to import components or finished devices from other countries where America has increased tariffs, then this expense may fall on indian customers.
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