India has emerged as the top exporter of smartphones to the U.S., surpassing China, according to research firm Canalys. This year has seen a significant increase in the number of smartphones assembled in India and shipped to the U.S., comprising 44 percent of U.S. phone imports in the second quarter of 2025. The smartphone production in India has soared by 240 percent compared to last year.

Conversely, China’s smartphone exports to the U.S. have fallen from 61 percent last year to 25 percent of total U.S. imports by June, now trailing behind Vietnam, which has taken a share of 30 percent of phone imports to the U.S.

The reduction in China’s exports to the U.S. is linked to tariff issues and “accelerated supply chain reorientation” due to uncertain negotiations between the two countries, as reported by Canalys. Major technology firms like Apple have relocated a considerable part of their supply chain to India while still depending on well-established manufacturing facilities in China, noted Canalys analyst Sanyam Chaurasia. Companies like Motorola and Samsung have also bolstered their supply share from India to the U.S.

China’s exports have faced growing threats since the U.S. implemented high tariffs on the nation, which were intensified, suspended in May, and have contributed to an uncertain landscape in global markets. Trade talks between the two nations resumed in Stockholm this week. In the meantime, a tariff simulator has estimated that Chinese exports to the U.S. might fall by $485 billion between now and 2027.

President Donald Trump has been urging technology firms to relocate manufacturing back to the U.S., as his tariffs have considerably influenced the global economy in recent months. In May, the President utilized Truth Social to inform Apple’s Tim Cook that he anticipates iPhones being produced in the United States – “not India, or anyplace else.”