Trump’s tariffs are prompting major tech companies worldwide to reevaluate their production and pricing strategies. Among the most affected is Apple, a leading player in the industry, which could face significant challenges due to tariffs imposed on China.

A recent report suggests that Apple plans to shift the manufacturing of iPhones destined for the U.S. market to India in response to these tariffs. Currently, Apple’s primary manufacturing base for iPhones is in China, which accounts for a substantial portion of its revenue.

To safeguard its sales, the company is keen to avoid price hikes that could result from maintaining production in China under the existing tariff regime. As a result, diversifying production to other regions has become a priority for Apple and numerous other companies facing similar dilemmas.

In early April, there was speculation that Apple might also consider increasing production of U.S. iPhones in Brazil. However, those reports lacked substantial evidence and were met with skepticism in the industry.

Yet, the Financial Times now reports that Apple could transition all U.S. iPhone production to India by 2026. Although India has been subject to tariffs from the Trump administration, the rates are significantly lower than those applied to China.

Additionally, the U.S. has paused tariffs on India while engaging in negotiations. While China claims that there are no ongoing negotiations, President Trump asserts that discussions are indeed taking place.

The outcome of these talks is likely to be critical for Apple, the U.S., China, and the global economy. By 2026, we might witness “Made in India” labels on all U.S. iPhones, but the developments in the coming weeks will be pivotal.