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With the United States slapping steep new tariffs on imports from China, Vietnam, and India, major tech companies like Apple and Samsung are reportedly considering shifting more of their production lines to India. According to recent reports, this move is largely driven by former U.S. President Donald Trump’s decision to impose high import duties — 54% on Chinese goods, 46% on Vietnamese products, and 26% on Indian exports.
While all three countries face higher trade barriers, India now appears to be the most economically viable manufacturing base for shipping goods to the U.S. market. This shift could mark a major win for the Indian government’s ‘Make in India’ initiative and significantly boost the country’s electronics manufacturing sector.
Apple May Cut Reliance on China and Ramp Up India Operations
Apple has already been producing iPhones in India for several years, and recent developments suggest the company is now seriously considering reducing its dependence on Chinese factories.
A top industry official told The Times of India, “India’s factories will be increasingly used to ship only to the US. Demand in other markets such as Europe, Latin America and even Asia will now be catered to from the China factories. In a way, this will be a significant leapfrogging for iPhone production in India and may lead to major expansion in the country, if Apple decides to stick to the formula going forward.”
At present, Apple’s iPhones in India are assembled by Foxconn and Tata Electronics. Tata has been rapidly growing its role in electronics manufacturing, having taken over operations previously managed by Wistron and Pegatron. If Apple decides against setting up new production facilities in other countries with lower U.S. tariffs — such as the UAE, Saudi Arabia, or Brazil — India is expected to become the company’s main hub for shipping to American consumers.
“If Apple does not go for developing all-new production zones in locations, such as the UAE and Saudi Arabia, or in Brazil — all of which have US tariffs of 10 per cent — then there will be a significant expansion of capacity in India,” the official added.
Such a move could bring fresh investments from Apple’s partners, including Foxconn and Tata, possibly pushing iPhone shipments to the U.S. well beyond the estimated $10 billion for this financial year.
Samsung Also Re-Evaluating Vietnam Operations, May Shift Focus to India
Samsung, which has heavily invested in manufacturing from Vietnam and exports around $55 billion worth of electronics from there, is also facing the heat from the new U.S. tariff policy. With Vietnam now facing a 46% tariff, compared to India’s 26%, the South Korean electronics giant may pivot more of its U.S.-bound production to its Noida factory in India.
“Samsung will find it better to ship from India at a duty of 26 per cent than export from Vietnam. While this will be a temporary measure till the Vietnamese govt negotiates with the US, it adds a lot of importance to Make in India,” the industry official said.
Samsung already manufactures several key models, including the upcoming Galaxy S25 and its foldable phones, at the Noida plant. The company could now accelerate this production to meet U.S. demand in the short term, especially while Vietnam works on trade discussions with Washington.
Consumers in the U.S. Could See Price Hikes
Meanwhile, a report by Reuters warned that companies like Apple might be forced to raise prices in the U.S. by as much as 30–40% to cope with increased production costs due to the new tariffs. Products like the iPhone, iPad, and MacBook could become significantly more expensive for American buyers unless Apple manages to quickly restructure its supply chain or absorb some of the cost hikes.
At this stage, the situation remains fluid, and much will depend on how trade negotiations between the U.S. and key exporting nations unfold in the coming weeks. However, one thing is clear: India is quickly gaining ground as a crucial player in the global electronics manufacturing industry — and Apple and Samsung’s next moves could be a turning point for the country’s economic ambitions.
As global supply chains undergo rapid realignment, India may soon find itself at the center of high-stakes decisions shaping the future of technology production worldwide.
