According to a recent study released on Monday, India has surpassed China as the top exporter of smartphones to the US, largely due to Apple’s ongoing adjustments in production in response to tariffs implemented during the Trump administration.
Canalys, a global technology market analysis firm, noted that in the second quarter of 2025, 44% of smartphones in the US were made in India, while only 25% were from China during the same period.
This marks a significant increase for India, which accounted for just 13% of American smartphone production between April and June of the previous year when China dominated with a 61% share.
“India emerged as the primary manufacturing hub for smartphones intended for the US market in the second quarter of 2025,” the report indicated, attributing this shift mainly to Apple’s expedited transition of its supply chain amid the fluctuating trade dynamics between the US and China.
Although Apple still produces a majority of its products in China, the company is diversifying its supply chain by expanding manufacturing to India and Vietnam.
Vietnam has also strengthened its position in US smartphone production, capturing over 30% of the market in the second quarter, an increase from 24% the previous year.
Apple’s strategy to shift operations to India and Vietnam has had mixed outcomes. Earlier this year, with increased tariffs on Chinese products, manufacturers noted that a large portion of US smartphones now come from these two countries.
Earlier in the year, the Trump administration increased tariffs on Chinese imports to 145%, prompting Beijing to respond with a 125% tax on American goods. A negotiated reduction of these rates to 30% and 10% was agreed upon in May, with a further extension of this agreement for another 90 days announced on Tuesday.
Despite threats of an additional 25% tariff on Apple unless the company shifts production to the US, experts believe that relocating smartphone manufacturing domestically is nearly unfeasible due to the substantial investments and time required for such a transition.
Although Trump did not act upon his tariffs threat against Apple, the company is now bracing for potential future developments from the administration after the ratified “mutual” tariffs were postponed for 90 days.
In early July, Trump mentioned reaching a trade agreement with Vietnam, stating that US goods would enter tax-free, while Vietnam would face a 20% tariff on imports. However, items shipped to Vietnam would incur a higher 40% rate.
Trump claimed he felt “pretty well set,” according to Reuters, though the trade deal had not been finalized by mid-July, and negotiations with India were still ongoing.
