India has overtaken China because the main exporter of smartphones to the U.S., as Apple continues to shift manufacturing within the face of the Trump administration’s tariffs, in keeping with new analysis launched Monday.
Canalys, a world tech market analyst agency, discovered that 44 p.c of U.S. smartphones had been manufactured in India within the second quarter of 2025, whereas simply 25 p.c had been manufactured in China throughout the identical three-month interval.
This represents an enormous 240 p.c soar for India, which produced solely 13 p.c of American smartphones between April and June of final 12 months, when China commanded 61 p.c of the market.
“India became the leading manufacturing hub for smartphones sold in the US for the very first time in Q2 2025, largely driven by Apple’s accelerated supply chain shift to India amid an uncertain trade landscape between the US and China,” Sanyam Chaurasia, a principal analyst at Canalys, stated in a press launch.
Apple produces the overwhelming majority of its merchandise in China however has more and more sought to variety its provide chains by transferring some manufacturing to India and Vietnam.
Vietnam additionally noticed its share of U.S. smartphone manufacturing develop within the second quarter, overtaking China with 30 p.c of the market. On the similar time final 12 months, Vietnam was liable for 24 p.c of U.S. smartphone manufacturing.
Apple’s shift towards India and Vietnam has been a double-edged sword. Within the face of sky-high tariffs on Chinese language items earlier this 12 months, the iPhone maker stated nearly all of its U.S. merchandise would come from the 2 nations.
The Trump administration raised tariffs on Chinese language imports to 145 p.c earlier this 12 months, in response to which Beijing raised its import tax on American items to 125 p.c. The 2 sides finally agreed to decrease these charges to 30 p.c and 10 p.c in Could, a truce they agreed to increase for an additional 90 days on Tuesday.
Nevertheless, President Trump has additionally gone after Apple for its abroad manufacturing, threatening the corporate with a 25 p.c tariff in Could except it moved extra manufacturing to the U.S.
Specialists have warned that is largely infeasible given it could require large investments and an prolonged time frame to maneuver smartphone manufacturing to the U.S., whereas additionally leading to larger smartphone costs.
Trump by no means adopted by on his risk to tariff Apple, however the iPhone maker is bracing for the administration’s subsequent transfer, because the president’s “reciprocal” tariffs are set to take impact Friday after a 90-day delay.
Trump introduced in early July that he had reached a commerce cope with Vietnam, during which U.S. items would enter the nation duty-free whereas Vietnamese imports would face a 20 p.c tariff. Items shipped by Vietnam will face the next 40 p.c charge.
The deal had not been finalized as of mid-July, though Trump stated it was “pretty well set,” in keeping with Reuters. The administration has not but reached an settlement with India.
