Trump's tariffs may force the company's hand, according to a report.

Apple may shift all of its US iPhone production from China to India in an effort to avoid Trump's tariffs, according to a report from The Financial Times. The goal is to manufacture all 60 million iPhone devices sold to American customers in India by 2026, doubling current production numbers in the nation. That would be a stark shift, as Apple has manufactured the majority of its iPhone products in China since they debuted in 2007.

Apple first started building iPhones in India back in 2017 and late in 2023, pledged to build up to 50 million iPhones in the nation within three years with suppliers Foxconn and Tata. With that in mind, it would only have to boost that number by 10 million to achieve the new 60 million unit goal.

Those tariffs of up to 145 percent announced earlier this month have thrown electronic manufacturing into turmoil, despite announced exemptions for smartphones and computers. India, by contrast, has only been subject to a 10 percent US tariff. However, the nation could still be subject to a 26 percent tariff once a 90-day grace period is lifted, particularly as Trump has called India a “tariff abuser” and “tariff king.”

Apple reportedly airlifted $2 billion worth of iPhones to the US from India in March to bypass impending China levies. Trump's stated goal with tariffs has been to shift more manufacturing to the US. However, many experts have said that would be virtually impossible, particularly in the electronics industry.

Source:
courtesy of ENGADGET

by Steve Dent

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