Manufacturing iPhones in India is still economically viable even if a 25 per cent tariff is applied, according to a recent report.

India is emerging after a brief conflict with Pakistan, with a ceasefire thankfully appearing to hold for now. This is welcome news for the business community and the public at large, many of whom too young to remember the adverse economic impact from previous conflicts.

India's path to becoming a clear-cut alternative to China isn't a guaranteed outcome, despite U.S. tariffs on Chinese goods. Bank of America expects iPhone costs could increase by only 25% if final assembly is moved to the U.

On Friday the president threatened a 50% tariff on the European Union and a 25% levy on smart phones if companies failed to move production to the U.S.

President Donald Trump said India has made an offer to drop tariffs on US goods, as the Asian nation negotiates a deal to avert higher import taxes.

The US initially announced new tariffs last month on imports from various countries, including a 26 per cent levy on India. It later suspended the tariffs on all its trade partners except China for 90 days until July,

US tariffs on imported iPhones will increase prices due to higher duties and production costs. Relocating Apples supply chain from Asia to the US is impractical and expensive. India remains a vital manufacturing hub,

President Donald Trump said that India has offered to cut all its tariffs on US goods but downplayed any sense of urgency to reach a trade agreement with the world’s fourth-largest economy.