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'Made in India iPhones will still be cheaper in US, even with Trumps 25% tariff: GTRI Report

  • On Friday, May 23, 2025, U.S. President Donald Trump announced a 25% tariff on iPhones if Apple manufactures them in India.
  • Trump's tariff threat follows his calls for Apple to produce in the U.S. And aims to discourage investment abroad, although Apple reorganized supply chains earlier.
  • The Global Trade Research Initiative reports that despite a possible 25% tariff, lower labor costs in India keep iPhone production cheaper than U.S. Manufacturing.
  • Assembly workers in India earn about $230 monthly versus $2,900 in California, making assembly costs roughly $30 in India compared to $390 in the U.S., less than 3% of iPhone's $1,000 price.
  • The report suggests that India remains a competitive manufacturing location even with tariffs, while Apple’s profit and retail prices could suffer if production shifts to the U.S.
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machash.com broke the news in on Friday, May 23, 2025.
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