Think different: Look at a smartphone tariff cut

If Apple fails to get US import-policy relief for iPhones and a reciprocal levy kicks in, we may need to lower our own duty to sustain an export boom that's our big 'Make in India' success

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With US President Donald Trump harping on import barriers like 'reciprocal tariffs' to protect factory jobs at home, Apple Inc has responded with a plan to invest $500 billion and create 20,000 jobs in America over the next four years.

News reports suggest it will not bring iPhone-making back onshore, but focus on churning out AI servers in the US.

This move, announced after CEO Tim Cook met Trump in the Oval Office, echoes what Apple did during the latter's earlier term, when it got tariff relief on iPhones shipped from China in lieu of local job creation.

If a similar deal works out this time round, taut nerves would ease in India.

As of now, however, a signature success of the Centre's production-linked incentive scheme is at threat.

Thanks to this subsidy, local smartphone assemblers had joined global supply chains.

This integration was led by Apple's iPhone export thrust from India.

In 2024, almost ₹1.1 trillion worth of these handsets were exported, a steep 42% rise that reflects an incline in both value addition and volumes.