Apple moves iPhone production to India amid trade tensions

In response to escalating trade tensions between the United States and China, Apple announced its intention to relocate its iPhone assembly for U.S. sales from China to India by the end of 2026. This shift is part of a broader relocation strategy, as the tech giant is aiming to double its iPhone production in India. The decision was influenced by significant tariffs imposed by the U.S. on Chinese goods, which have created a challenging environment for companies relying on imports from China. Previously, Apple had been establishing assembly operations in India and Vietnam while China remains the central hub for iPhone manufacturing globally. As tensions rose, U.S. President Donald Trump implemented a series of tariffs on numerous countries, with Chinese products facing levies of up to 145%. This move aimed to stimulate domestic manufacturing and balance trade deficits. In reaction, China retaliated with its own set of tariffs, impacting various commodities and creating upheaval in international trade relations. The U.S. Customs and Border Protection agency later published a list of exempted products, including computers, smartphones, and other technology devices, which are subject to a reduced 20% tariff rate. This pause was designed to allow companies time to transition their operations to U.S. soil, alleviating immediate pressures associated with the tariff hikes. In light of impending tariffs on Indian goods, Apple reportedly flew iPhones and other devices from India to the U.S. to avoid the anticipated financial burden. Analysts indicated that the price of the cheapest iPhone model could rise significantly if production costs are passed onto consumers, emphasizing the potential market impact of these tariffs. The company's communications reflect an urgency to adapt its manufacturing strategy amid a turbulent global trade landscape.