Apple Faces US 25% iPhone Tariff with India Production Shift Expected

Apple faces potential challenges from President Trump's threat to impose a 25% tariff on iPhones manufactured outside the U.S., which could reduce Apple's earnings per share by around 2%. However, Apple is actively diversifying its production away from China, notably expanding iPhone manufacturing in India, which could shield the company from tariff impacts. A pending U.S.-India trade agreement could further benefit Apple by suspending tariffs on Indian-made iPhones, enhancing Apple's supply chain resilience and margin protection ahead of peak sales seasons. Analysts from Wedbush Securities maintain an Outperform rating with a $270 price target for Apple, highlighting India's growing technology workforce and supply chain capabilities as key advantages over China. They also emphasize that domestic U.S. manufacturing is economically unfeasible for Apple, likely raising iPhone prices significantly and requiring many years to implement. Overall, Apple's strategic move to ramp up production in India combined with potential trade agreements may mitigate tariff risks and support stock recovery despite current market uncertainties.