Apple shifts iPhone production to India amid U.S.-China trade tensions
Apple plans to increase iPhone production in India to avoid high U.S. tariffs on Chinese goods, reports a Kazinform News Agency correspondent. This shift could weaken China’s longtime role as Apple’s main manufacturing hub.
President Trump has raised tariffs on China, now totaling 54%, and threatened to push them up to 104%. These tariffs are aimed at pressuring China over issues like fentanyl trafficking. In response, China hit back with equal tariffs on U.S. goods.
India, by contrast, faces a much lower 26% tariff, making it a more attractive option. For example, current tariffs could add about $300 to the cost of an iPhone 16 Pro made in China, compared to about $150 if made in India. Producing in the U.S., as Trump encourages, would be even more costly due to high labor expenses.
Apple is expected to produce 25 million iPhones in India in 2025, half of which could supply the U.S. market. To get ahead of the tariff hikes, Apple recently flew multiple shipments of devices from China and India to the U.S.
While Apple CEO Tim Cook is reportedly seeking a tariff exemption, Trump remains firm. Without a deal, Apple may accelerate its move to India.
Apple already makes about 14% of its key devices in India. Trade tensions, rising costs in China, and past U.S. restrictions have pushed the company to diversify its manufacturing base.
Apple’s shift to India reflects the wider impact of Trump’s protectionist trade policies. As Kazinform earlier noted, his tariffs align with a mercantilist approach aimed at shielding U.S. industries from foreign competition. This strategy is now reshaping global supply chains and pushing companies like Apple to rethink their manufacturing priorities.