By Rolfe Winkler

Tim Cook's iPhone strategy is facing fresh uncertainty after President Trump announced a new 25% tariff on India Wednesday.

Apple has spent years diversifying its supply chain away from China so that today the company is able to assemble enough iPhones in India to meet the "majority" of U.S. demand, Cook said on Apple's last earnings call.

That strategy has looked smart since President Trump began imposing tariffs earlier this year. Today, iPhones imported from China face a 20% fentanyl tariff, while those imported from India face no tariff.

The reason smartphones face no levy when they are imported from India is because they are temporarily exempt from so-called reciprocal tariffs. The administration granted that exemption for smartphones pending an investigation by the Commerce Department that will help establish what reciprocal tariffs they will be subject to.

In the President's Truth Social Post today, the new 25% tariff on India he announced appears to be another reciprocal tariff from which smartphones would still be exempt.

But whenever the Commerce Department completes its investigation, Apple could face additional levies, on imports from China and from India.

The wildcard here is whether Trump TACOs again, reaching a deal or offering another extension on his proposed levies.

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(END) Dow Jones Newswires

July 30, 2025 13:03 ET (17:03 GMT)

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