Apple looks to move all US-bound iPhone assembly to India: Why it matters

Tech giant Apple is musing to move the assembly of all its iPhones sold to the US from China to India by next year, according to Financial Times that cited sources familiar with the matter. The iPhone and MacBook maker’s latest stance to shift its assembly to India seems to be in direct response to US President Donald Trump’s trade war against China.

This news comes at a time when China is said to be considering exempting certain US imports from its 125 per cent tariff slab, according to agencies. The Chinese government recently reached out to American business associations and enterprises in the mainland to seek details about goods that might be eligible for such exemptions.

The news of Apple’s plans to move away from China and the manufacturing capital of the world looking at exemptions could be viewed as the first signs that China is indeed worried about the economic fallout of the Trump tariffs.

Apple shifting more of its iPhone assembly to India might also urge other Indian exporters not to use the country as a re-routing hub for goods originating from China to the US.

According to economic thinktank GTRI, Indian enterprises should look at “genuine value addition, supply chain transparency, and adhere to US customs rules”.

Currently, the US tariffs on China run as high as 245 per cent on China. Reciprocal tariffs to other countries, including India, were slashed to 10 per cent on a temporary basis.

According to US Treasury Secretary Scott Bessent, India is expected to come up with provisions in the first tranche of the bilateral trade agreement in a bid to avoid Trump's reciprocal tariffs, which are expected to come into effect after July 8.

Such an upheaval has caused a worldwide disruption in the way companies source and import products, even affecting global giants like Apple Inc. If the move to India takes place, the country’s iPhone assembly would essentially double from what it is now. However, that means stripping China off of the massive production and assembly facilities Apple established there for a better part of the past two decades. 

 

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