Why Apple shifts focus to India amid rising US-China tariffs

Apple is shifting its iPhone production strategy, ramping up exports from India to the US as a response to the escalating US-China trade war.

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This move comes as US President Donald Trump imposes heavy tariffs, up to 54%, on Chinese tech imports, including Apple's products.

Apple has been deeply reliant on China for its manufacturing, but the new tariffs have prompted the company to seek alternatives, with India emerging as a critical player in Apple's global supply chain. The shift is tactical for now, but experts predict it could pave the way for a long-term production base in India as US-China tensions show no sign of easing.

APPLE'S CRISIS MODE Trump's tariff hikes have placed Apple in a precarious position, potentially causing a significant financial blow. With tariffs on Chinese goods reaching up to 54%, Apple could face losses of $8.5 billion annually if exemptions aren't granted. Additionally, these tariffs would add an estimated $300 to the cost of each iPhone 16 Pro.

In response, Apple has accelerated its iPhone exports from India, where retaliatory tariffs are relatively lower, at 26%. This move is part of a broader strategy to mitigate the financial damage caused by the new tariffs.