Trump's tariffs announced more than three weeks ago have sent global trade and stock markets into turmoil. The world's leading technology companies have lost hundreds of billions in market value as tariffs will increase operating costs. Apple, which manufactures the majority of its devices in China, is among the hardest hit by tariffs of up to 145%. According to a Financial Times report, to avoid being hit by these tariffs, Apple will move iPhone production for the US market to India.
Up to 60 million iPhones for the US market will be manufactured in India with the transfer process to be completed by the end of 2026. A few weeks ago, Apple was reported to have flown 1.5 million iPhones from India to the US to avoid new tariffs.
Apple began manufacturing iPhones in India several years ago to meet local needs, receive Make in India incentives and also learn from the impact of the pandemic. President Trump still insists that production must be brought back to America if the company does not want to be hit with high tariffs. But the truth is that this cannot be done overnight because America not only does not have the supply chain to build iPhones, it also does not have the local skilled workforce.