Apple is ramping up production in India to avoid Donald Trump’s tariffs on China

ABC NEWS (Australia)

Apple is ramping up production in India as a way to beat US president Donald Trump’s tariffs in China. The tech giant has reportedly flown 600 tonnes of I-phones from India to the US in the last few weeks to avoid paying the higher tariffs.

Transcript

00:00Around 80% of iPhones imported to the United States come from China.

00:08The rest come from here in India.

00:10But those numbers are likely to shift significantly this year,

00:13as Apple tries to avoid the impact of the whopping 125% tariffs placed on Chinese imports to the US.

00:21That strategy had begun even before Liberation Day.

00:25At least six cargo planes with a capacity of 100 tonnes each have reportedly flown from India to the US since March,

00:33including one this week, carrying an estimated 1.5 million iPhones.

00:39Around 10-15% of iPhone assembly happens in India.

00:44And Apple had already wanted to increase that number to 25% by this year,

00:49and is now reportedly looking to increase it even further and fast.

00:54The company is building more factories, hiring more workers,

00:57and has added Sunday as a production day at its biggest plant.

01:02But India is not yet a perfect alternative.

01:05Assembly can be done here, but it's impossible to make an iPhone without parts from China.

01:10Apple had already been developing its supply chain here as an alternative,

01:15and it would be wise to continue investment.

01:18With a bilateral trade agreement between India and the US likely to take effect later this year,

01:23the 26% tariffs slapped on India last week, which are currently on pause,

01:29may have a very short lifespan, if they come back into effect at all.

01:37Thank you, everyone.

01:39We're talking to you next week.

01:43I'm going to go back to our next week.

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