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According to a recent report from CNBC, Apple’s iPhone business in India will remain unaffected by the upcoming increase in U.S. tariffs on imports from 25% to 50%, effective August 27, 2025. This hike is part of an executive order signed by President Donald Trump as part of his broader trade policy shift. Despite this tariff increase, semiconductors and products like smartphones and tablets are excluded from the higher tax rate. This exemption has been in place since before the 25% tariffs were implemented and remains unchanged.
Since iPhones rely on advanced semiconductor technology, they fall under the exempt category, protecting Apple from additional costs due to the new regulations. However, Apple is adapting its strategies to mitigate potential impacts. The company plans to expand its manufacturing facilities in India, which will enable it to produce all models of the upcoming iPhone 17 lineup.
While India-made iPhones serve both local and U.S. markets, President Trump has warned that the current exemption may not last forever. He indicated that no company should assume permanent tariff exemptions, and the administration could introduce targeted levies on semiconductor-based products at any time, affecting iPhones and other high-tech devices.
To strengthen its position in the U.S., Apple is investing $500 billion in domestic manufacturing and an additional $100 billion to expand production and innovation capabilities. These investments are aimed at reducing supply chain risks and influencing future trade policies favorably for both the company and the government. For now, Apple’s iPhone manufacturing in India remains secure.
📚 Reading Comprehension Quiz
According to the report, which of the following products is NOT exempt from the increased U.S. tariffs on imports?
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