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Apple Bolsters U.S. iPhone Supply as Trade War Tariffs Soar

Amid record U.S.-China tariffs, Apple shifts production to India and accelerates shipments to the U.S. to mitigate rising costs.

Don't mean to burst your bubble, but an American-made iPhone isn't in the cards.
The fourth generation of AirPods is showcased as Apple holds an event at the Steve Jobs Theater on its campus in Cupertino, California, U.S. September 9, 2024. REUTERS/Manuel Orbegozo/File Photo
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Overview

  • President Trump has called for companies, including Apple, to relocate production to the United States as part of his push for economic nationalism.
  • The U.S. has imposed a 104% tariff on Chinese imports, with China retaliating with an 84% tariff on U.S. goods, escalating the trade conflict.
  • Apple has diversified its manufacturing by increasing production in India and recently transported five plane loads of iPhones to the U.S. to preempt tariff impacts.
  • Experts warn that fully reshoring iPhone production to the U.S. could drive prices to exorbitant levels, potentially reaching tens of thousands of dollars per device.
  • China has vowed to continue the trade war, while Apple navigates supply chain challenges to minimize disruptions and price increases for consumers.