Tariff battles, iPhones, and billion-dollar bets; India wants duty-free exports as Trump threatens Apple over foreign-made gadgets. High-stakes talks near crunch time.
India has urged the United States to eliminate import duties on Indian electronics as part of ongoing trade negotiations. This comes as US President Donald Trump has signalled concerns over Apple importing iPhones assembled in countries like India, threatening a 25% tariff on such devices.
According to a report by The Indian Express, a senior Indian official, speaking anonymously, confirmed that negotiators are working on implementing zero-duty access for electronics exports to the US.
Talks are at a critical stage, with a July 9 deadline looming for a reciprocal tariff pause.
In April, the US imposed a 26% tariff on Indian imports, later offering a 90-day suspension. However, Trump has since intensified his criticism of electronics made abroad, targeting Apple in particular. He stated that iPhones produced outside the US—including India—could face additional tariffs unless production shifts back home.
This stance comes despite Apple announcing plans to manufacture a larger share of iPhones in India. Its supplier, Foxconn, has committed $1.49 billion to expand operations in Tamil Nadu. The new facility will be part of Apple’s broader strategy to diversify away from China.
Trump earlier claimed he told Apple CEO Tim Cook not to grow production in India unless it was solely for the local market. Nevertheless, Apple now produces around 15% of iPhones in India, aiming to raise that to 25%. The company faces challenges in relocating production to the US due to a lack of a local supply base.
US resistance to Indian trade demands also stems from the absence of Trade Promotion Authority (TPA), which limits the administration’s ability to reduce tariffs. Experts warn any tariff agreement reached may be temporary, depending only on executive action.
The final outcome of the trade talks could shape future tech supply chains and US-India trade ties.
