Apple iPhone production India is set to grow as Apple takes action to mitigate the impact of rising tariffs on Chinese imports. In a strategic shift, the tech giant is increasing its production in India to counteract the 34% tariff imposed by the Trump administration on Chinese-made goods. This is a temporary measure while Apple seeks an exemption, similar to the one granted during Trump’s first term.
Apple iPhone Production India: Impact of U.S. Tariffs
The decision to boost Apple iPhone production India comes amid a turbulent trade environment. The Trump administration’s imposition of steep tariffs on Chinese products, which already includes a 20% import tax, has forced many companies to reassess their supply chains. Apple, which traditionally manufactures 90% of its hardware in China, is now looking to India as a viable alternative to avoid the financial strain of these duties.
Apple iPhone Production India: Future Strategy and Exemptions
As Apple works to secure an exemption from the tariffs, analysts suggest that a price hike of up to 6% could be necessary if an exemption isn’t granted. This would potentially increase the cost of iPhones for U.S. consumers. Apple’s recent announcement of investing over $500 billion in the U.S. could play a crucial role in securing this exemption. While the shift to India is a short-term solution, it reflects Apple’s commitment to adjusting to global economic pressures.
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Source: www.investopedia.com
