Apple Responds To Tariff Hikes By Shifting iPhone Production To India!
As the trade tensions between the United States and China continue to escalate, tech giant Apple is reportedly moving quickly to adapt. With China’s exports facing soaring tariffs from the U.S., Apple is said to be seeking a workaround by increasing iPhone production in India a move that could help the company avoid skyrocketing costs.
U.S.China Tariff Spikes
Earlier this week, former President Donald Trump announced a 90-day pause on so-called “reciprocal” tariffs. Despite that, he implemented significant new tariff hikes, raising duties on Chinese goods to as much as 125 percent. China responded with its own increases up to 84 percent on U.S. imports intensifying an already strained trade relationship.
Apple’s Heavy Dependence on China
Apple, valued at over $3 trillion, is one of the most heavily impacted companies in the tech sector due to its deep manufacturing ties with China. According to reports from Evercore ISI, around 80 percent of Apple’s total production, including 90 percent of iPhone assembly, currently takes place in China. Additionally, China remains Apple’s second-largest consumer market, making the impact of these tariffs twofold.
India Steps In as a Manufacturing Alternative
To offset the high costs associated with the latest tariffs, The Wall Street Journal reports that Apple is ramping up its iPhone production in India. While the company has been assembling older iPhone models in India since 2017, sources say Apple is now expanding this approach to newer models as well. The shift could offer a temporary buffer while the company continues to push for potential tariff exemptions.
Rising Prices for Consumers
The tariff war is not just a headache for Apple it’s also likely to hit consumers hard. Financial experts warn that iPhone prices in the U.S. could rise significantly. Harry Mills of Oku Markets told Sky News that shoppers should brace for a potential price increase of up to £300 for the latest models. Meanwhile, Prem Raja from Currencies 4 You warned that if Apple passes the cost burden onto consumers, the iPhone 16 Pro Max could reach $2,300 — a 43 percent increase.
Global Ripple Effects
Beyond pricing, the Chinese commerce ministry has voiced strong opposition to the new tariffs. They warned of major financial market disruptions, rising inflation in the U.S., and the possibility of a weakened industrial base. China emphasized it is prepared to respond with firm countermeasures.
A Shifting Landscape
As Apple adjusts its strategy in real-time, the global tech and trade landscape is evolving rapidly. Whether the shift to India will be enough to offset rising costs remains to be seen — but for now, consumers and companies alike are bracing for impact.
