Apple's Tariff Self-Rescue: All U.S.-Sold iPhones Might Shift from "Made in China" to "Made in India"

TradingKey - In response to the U.S.-China tariff war, Apple (AAPL.US) is accelerating its supply chain diversification strategy, with plans to move all iPhone assembly for the U.S. market from China to India by 2026.

According to the Financial Times, citing sources familiar with the matter, Apple aims to manufacture over 60 million iPhones destined for the U.S. entirely from India by the end of 2026. Achieving this goal would require India to double its current iPhone production capacity.

Analysts noted that Apple’s supply chain shift is unfolding earlier than expected, driven by President Trump’s tariff policies and escalating tensions between the U.S. and China.

Currently, 80% of iPhones sold in the U.S. are assembled in China, with the remaining 20% produced in India. Since initiating iPhone assembly operations in India in 2017, Apple has steadily advanced its "de-Chinaization" strategy, working closely with manufacturing partners such as Foxconn and India’s Tata Group.

Some analysts view this transition as a critical step to sustain Apple’s growth and momentum, describing the company’s swift response as an effort to mitigate rising tariff risks.

Meanwhile, U.S.-India trade relations have shown positive momentum. The U.S. has suspended a 26% tariff on Indian goods, marking significant progress in bilateral negotiations.  In contrast, there are no clear signs of imminent tariff reductions between China and the U.S., although early indications suggest that formal discussions may soon begin.