The tech giants plans come amid an escalating trade battle between the US and China

Tech giant Apple plans to move assembly of all iPhones from China to India, according to India's Ministry of Communications, as cited by local media. The shift comes amid rising trade tensions between Washington and Beijing.

China, where Apple makes most of its iPhones through suppliers such as Foxconn, has been hit by the toughest US tariffs yet. Tensions escalated after President Donald Trump imposed steep 145% duties on some of Chinese imports last month, part of a broader push targeting more than 90 trade partners. Beijing responded with 125% tariffs on US goods and new export curbs.

On Tuesday, Indian Telecommunications Minister Jyotiraditya Scindia said Apple "has decided to source and produce all its mobile phones in India in the years to come."

Apple CEO Tim Cook reportedly confirmed the production shift during the company's quarterly earnings call, saying "the majority of iPhones sold in the US will have India as their country of origin."

With more than 60 million iPhones expected to be sold annually in the US by end-2026, Apple would need to double production in India, according to media reports. The company assembled $22 billion worth of devices there in the past year, a 60% increase that brought India's share to about 20% of global iPhone output. China, however, still accounts for roughly 80% of Apple's production capacity.

iPhone shipments from India to the US reportedly picked up ahead of Trump's worldwide "reciprocal" tariffs, which took effect on April 5. Apple flew five planeloads of iPhones and other devices from India to the US over three days in late March, the Times of India reported.

Apple lost more than $700 billion in market value in the four days following Trump's tariff announcement. The stock recovered some ground after he offered a temporary reprieve for consumer electronics made in China. The devices are still subject to a separate 20% tax on all Chinese goods. India was hit with a 26% tariff, which is now on hold while it negotiates a trade deal with Washington.

Trump says his tariff campaign is part of a broader effort to revive US manufacturing and bring jobs back home. The measures have been paused until July while the administration seeks bilateral agreements.

Indian Trade Minister Piyush Goyal said on Tuesday the two sides were making "very good" progress and expected to finalize a deal soon.

Industry experts say shifting production from China may not be easy, as high-value components like semiconductors are still made there, and chip manufacturing in India is "five to ten years away."

(RT.com)