For the first time, in the second quarter of 2025, India overtook China as the number one exporter of smartphones to the U.S., following Apple’s decision to shift production to India due to tariffs, according to a new report by research firm Canalys.
Smartphones from India accounted for 44% of U.S. imports (up from 13% last year), while those from China fell to 25% (down from 61%), pushing China to third place behind Vietnam, which represented 30% of exports (up from 24%). The total volume of smartphones manufactured in India rose by 240% year-on-year.
Donald Trump is threatening to impose a 25% tariff on India starting August 1st, citing the country’s trade relations with Russia.
India’s new leading position is “largely due” to Apple’s (AAPL) rapid shift of production from China to India, driven by the “uncertain trade landscape” between Washington and Beijing. Nevertheless, Trump has threatened to impose a 25% tariff on India as of August 1st due to its commercial ties with Russia.
Although smartphones are exempt from many of the U.S. tariffs on China, Apple CEO Tim Cook has stated they are still subject to a tariff of at least 20%.
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