Recently, Apple and other manufacturers have been moving part of their production out of China, with India benefiting from this shift as it gradually attracts manufacturers. When Donald Trump became president, there were questions about how his policies would affect the tech industry, and it seems the first changes are now visible. The United States has imposed a 10% tariff on products imported from China, which means that iPhones could become one of the affected products.
Apple’s Shift
Even though Apple has moved some production to India, it still has a much larger production base in China. The iPhones produced in India are not enough to meet the demand for Apple’s phones in the country. As a result, the remaining iPhones are still being made in China, a country with strained relations with the U.S. The 10% import tax will now impact the price of iPhones, iPads, Macs, and other Apple products made in China, as well as other electronics typically produced there.
What’s Next for Apple and the 10% Tariff
For now, Apple has some time to decide how to deal with this price increase, as sales of the new iPhone are lower after the first quarter. However, the majority of Apple’s sales still come from iPhones, and the company could benefit from the incentives India offers for increasing its production. If Apple can produce enough iPhones in India to meet the growing demand, it may avoid paying the 10% tariff in the future.
