HIGHLIGHTS
- The US recently announced a massive reciprocal tariff on imported products.
- This move by the US President is expected to hurt iPhone pricing.
- To counter this, the company plans to boost iPhone production in India.
The President of the United States of America, Donald Trump, recently announced reciprocal tariffs on other nations worldwide. This tariff is meant for the products getting imported into the US from different countries. This is going to adversely affect the pricing of iPhones, and therefore, Apple is taking measures to minimize the effect of tariffs.
Apple will boost the supply of Made-in-India iPhones
The US has long imposed some of its highest tariffs on China. In response, China hit back with its tariffs. Now, the White House has escalated tensions further by announcing a massive 105% tariff on Chinese imports. Since most iPhones are manufactured in China, this trade war could spell trouble for the brand.
To counter this, the company is reportedly planning to sell more Made-in-India iPhones in the US market, as reported by The Wall Street Journal. Since the company will now focus more on producing iPhones made in India, it could have a positive effect on the production chain and economy of India.
The Chinese production unit, on the other hand, may suffer because of since the company will try to lessen its reliance on local production because of the high tariffs. Some reports also say that we will see a price hike on the iPhones, but this remains a mystery since we do not have any official announcement on the same.
