This movement not only reinforces the role of India as a key actor in global manufacturing, but also underlines the importance of diversifying production sources in a context of international commercial tensions.
Apple moves the production of iPhones to India.
Apple plans to transfer the assembly of all iPhones Sold in the United States to India next year, according to Financial Times this Friday, citing sources close to the matter. This decision is made in a context in which commercial tensions, exacerbated by the tariffs imposed by the former president Donald TrumpThey have driven the company to distance themselves from China.
China, where Apple produces most of its devices through members such as Foxconn, has been beaten by US tariffs, which considerably affected the company’s market value, losing up to 700,000 million dollars. In response, Apple began exporting iPhones manufactured in India to avoid tariffs that fall on products from China.
Peace signs
Trump had announced upper “reciprocal” tariffs 100% For Chinese imports, although a temporary extension for smartphones was subsequently granted. Despite this, these products are still subject to a tariff rate of 20% above all imports from China.
India, on the other hand, has faced a 26%reciprocal tariff, although it is suspended while both countries negotiate a possible commercial agreement. Apple has been present in the Indian market for almost 30 years, and opened its first store in Bombay two years ago, after starting the local iPhones manufacture in 2017.
Apple
Depositphotos
This Friday, it transpired that China analyzes exempting some US imports from apply in the clearest signal until now of the concern of the Asian giant for the economic consequences of the commercial war.
The dispensation, which continues to declarations of de -escalated from Washington, indicates that the two largest economies in the world are prepared to contain their conflict, which had frozen much of the bilateral trade, feeding fears of a global recession.
Beijing’s exemptions – who expect business groups extend to dozens of industries – slightly promoted the US dollar and raised stock markets in Hong Kong and Japan. “As a reciprocal movement, it could offer a potential way to reduce tensions,” said Alfredo Montufar-Helu, main advisor to the China Center for The Conference Board, an analysis group.
Source: Ambito
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