India prepares for Trump trade disruption by cutting import taxes for Apple & others

Certain iPhone components including iPhone circuit boards will no longer face import taxes in India as the country positions itself to weather changes in global trade.

In 2024, the Indian government reduced its import taxes on chargers, printed circuit board assembly (PCBA) and smartphones themselves, from 20% to 15%. That 5% cut was estimated to mean Apple would earn between $35 million and $50 million more annually.

According to Reuters, though, India has now entirely dropped import taxes on certain components and accessories, although not on smartphones. India's Finance Minister Nirmala Sitharaman announced the removal of the tax during her annual budget speech and the government has prepared a list of affected components.

That list is said to include a range of components and accessories that again feature PCBA, but also parts of camera modules. USB cables that were previously taxed at 2.5%, will now also face no import taxes.

The 2024 cut had been announced as being in the "interests of consumers." This 2025 cut is being seen as India positioning itself and its market in preparation for the effects of any Trump Administration tariffs. The move is to help incentivize companies to relocate manufacturing there and away from countries such as China that are at least likely to face tariffs.

The benefits to Apple and others

Cutting component import taxes will make it cheaper for firms to assemble devices in India. Apple's manufacturing partners such as Foxconn, currently make iPhones and chargers in India. In December 2024, it was claimed that Apple was also looking to move some AirPods production to India, specifically to help avoid tariffs.

Separately, Sitharaman said in 2024 that she would be leading a review of the country's whole customs duty rate, in order to simplify the complex process and boost trade. This is expected to also attract more manufacturing to the country, which is competing against Vietnam for Apple-related orders

The component import tax news follows the announcement in early January 2025 that India planned to offer subsidies to attract firms. That subsidy, estimated at around $2.7 billion, was then announced in Sitharaman's budget speech.

India has already become progressively more important to Apple, as the company works to reduce its over-reliance on China. Apple plans to make 25% of all its iPhones in India by the year 2028.