With the defeat on import barriers like ‘mutual tariff’ to protect factory jobs at home with US President Donald Trump, Apple INC has invested $ 500 billion in the next four years and manufacture 20,000 jobs in the US Reply with the plan. News reports suggest that it will not bring back the iPhone maker, but will focus on churning the AI server in the US.
CEO Tim Cook announced after meeting Trump at the Oval Office, suggests what Apple did during the first term, when he got the tariff relief on the iPhone sent from China in exchange for local employment generation. If a similar deal works at this time, the taut veins in India will be reduced.
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So far, however, a signature of the Center’s production-linked incentive scheme is in danger. Thanks to this subsidy, local smartphone assemblies joined the global supply chain. This integration was led by Apple’s iPhone exports from India.
In 2024, almost These handsets of 1.1 trillion value were exported, a standing 42% increase that reflects an inclination in both the price addition and versions. A large part of the shipments was in the US market, where Indian-made equipment began to rival Chinese-made rival.
Even new models are being gathered here, this export bounce has been advertised as a top-end label ‘made in India’. But then, Trump won the White House and placed the idea of mutuality on his business agenda.
Should we reset a trade policy by the US influence manufacturers in India, Samsung amidst a difficult hit, Chinese players with local factories and Apple of phone-makers: Foxconn’s Indian business, local unit of Tata Electronics and Patron, in which, in which Foxconn Tata took 60. Recently % stake.
Also read: India should not let Trump’s tariff and trade disruption weaken their export emphasis
Of course, this is the only estimate how the game of Trump’s obstacles will come out. On current signals, he can impose tariffs to mirror our mirror on a bilateral basis, as meaning of mutuality. This means that India’s 16.5% import duty on smartphones will invite America to charge the same on Indian shipment.
A raised barrier may be even more in a bizarre but admirable landscape: if our GST is also counted. Either way, our US-bound is erected to squeeze exports. Give, this squeeze can be mild if the devices manufactured by China are faced and even stator tariffs and American buyers prove to be value-insensitive. But we cannot trust the blow softner.
Some smartphone inputs have to be cut off Indian import duties, as mentioned in India’s latest budget, but if we kick the tariff in mutuality, we should consider a large duty cut on the collected product.
Since the strategic objective of this obstacle was to mold the domestic assembly with import competition, we stare a business-bound.
Also read: Trump’s mutual tariff: time to reconsider its trade policy for India
Cut into a broader duty as demand for trade rules, can again expose our market to Chinese flow, hurting local assemblies. But then, these businesses have achieved the scale and should use it to accelerate a cost edge. Importantly, imports face risks, weighing against the need for low-career access in the US to maintain a boom.
We should also have a factor in consumer benefits of cheap handset that a duty cut will be a product. In addition, it will align with the logic of free trade. A conservation policy should serve as the most industry incubator. Beyond one point, producers should come in contact with global rivalry, push them to increase their game.
While Cook may still be able to swing an iPhone carved swing, our best bets may be well to play for the American market access. A free-trade treaty can reduce our path, but it will take a long time. And we should follow the business rules.