Apple and Samsung are reportedly looking to move more of their global manufacturing operations to India in response to the steep import tariffs introduced by U.S. President Donald Trump. With the U.S. now imposing a 54% duty on Chinese goods, 46% on products from Vietnam, and 26% on Indian exports, India appears to be the most favourable option for manufacturing goods destined for the American market. Apple has already been producing iPhones in India for quite some time, and a recent report from The Times of India indicates that the company may now be planning to cut back on its reliance on Chinese production facilities.

"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 a major expansion in the country if Apple decides to stick to the formula going forward," a leading industry official spoke to The Times of India.

At present, iPhones in India are being assembled by Foxconn and Tata. Tata has been growing its presence in electronics manufacturing, having taken over facilities that Wistron and Pegatron earlier managed. Although Apple is considering other locations like the UAE, Saudi Arabia and Brazil, where tariffs are lower at around 10 per cent, India seems to be leading the race for further expansion.

"If Apple does not go for developing all-new production zones in locations, such as the UAE and Saudi Arabia, or Brazil - all of which have US tariffs of 10 per cent - then there will be a significant expansion of capacity in India," the official continued.

If the expansion goes ahead, it could lead to new investments from Foxconn and Tata, and iPhone exports to the US might exceed the current projection of $10 billion for this financial year. However, things are still uncertain and largely depend on how trade talks between the US and other countries develop. Meanwhile, Samsung, which has heavily relied on its large manufacturing base in Vietnam, is also feeling the impact of the new tariff rules. The company exports around $55 billion of electronics from Vietnam, but the increased duties might give India a competitive edge.

"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 until the Vietnamese government negotiates with the US, it adds a lot of importance to Make in India," the official said.

Samsung is already producing major models like the Galaxy S25 and Fold at its Noida facility, and the company may soon ramp up production for the U.S. market from India shortly.

At the same time, Reuters reported that companies like Apple might need to increase prices in the U.S. by 30–40 per cent due to rising production costs. This could mean American customers may have to spend significantly more on products like the iPhone, iPad, and MacBook unless Apple can absorb the extra expenses or successfully rework its supply chain. More clarity on the situation is expected in the coming weeks or months.