Apple intends to shift iPhone production to India by the year 2026
Apple Progresses Strategic Shift away from China Amid US-China Trade Tensions
In an expedited response to the escalating US-China trade war, tech titan Apple is steering its iPhone production towards India. According to the Financial Times (FT), this decision comes as the company grapples with the necessity to cut ties with China due to President Donald Trump's trade war initiative.
Despite most iPhones still being assembled in China, Apple has been diligently expanding its Indian production capacity through partnerships with Tata Electronics and Foxconn. In 2024, the company started importing pre-assembled component sets from China for iPhone assembly in India.
Historically, Apple has been implementing measures to diversify its supply chain. With the recent turn of events, however, the corporation is moving at a faster pace than investors anticipated. By the end of 2026, Apple plans to purchase over 60 million iPhones in India for US market sales, effectively doubling its smartphone production in India. This shift represents approximately 28% of the 232.1 million global iPhone shipments that the US accounted for in 2024.
Donald Trump instigated the start of additional tariffs for 185 countries in April, with an opening rate of 34% for China. Following Beijing's retaliatory measures, the tariff rate surged to a staggering 125%. Taking prevailing tariffs into account, the effective rate now stands at 145%, as clarified by the White House. In response, Beijing increased tariffs on US goods to 125% starting from April 12.
On April 22, President Trump hinted at the potential for reaching a trade agreement with China. The Wall Street Journal, citing a source, reported that tariffs on Chinese goods may be lowered to approximately 50-65%. Some sources speculate that the US may decrease tariffs on imports from China to 35% for goods that don't pose a threat to US national security, and up to 100% for strategically important goods.
Meanwhile, the US announced significant progress in its bilateral trade negotiations with India on April 22. The previously implemented tariffs on Indian goods amounted to 26%. On April 9, President Trump suspended the implementation of additional tariffs on over 75 countries for 90 days, as these nations did not retaliate against the US.
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- Apple, in response to the US-China trade war, is transitioning iPhone production from China to India.
- The tech giant has partnered with Tata Electronics and Foxconn to expand its Indian production capacity.
- By the end of 2026, Apple plans to purchase over 60 million iPhones in India, aiming to double its smartphone production there.
- In April, President Trump instigated additional tariffs for 185 countries, with a 34% rate for China, which escalated to a staggering 125% following Beijing's retaliatory measures.
- On April 22, President Trump hinted at potential trade agreement with China, suggesting a possible reduction in tariffs on Chinese goods to around 50-65%.
- The US has made significant progress in its bilateral trade negotiations with India, with previously imposed tariffs on Indian goods reduced from 26% to an unspecified lower value.
