Apple is accelerating its move to shift iPhone production to India in a strategic bid to bypass the soaring tariffs imposed on Chinese goods by U.S. President Donald Trump, according to reports. The move could mark a significant pivot in global manufacturing and deliver a double blow to China—financially and symbolically—as tensions between the world’s two largest economies intensify.

Apple’s decision comes in the wake of Trump’s sweeping trade measures, including a 34% reciprocal tariff on Chinese imports, followed by a threat to hike it further to 104% if Beijing doesn’t withdraw its counter-tariff on U.S. products. These tariffs have already taken a toll on Apple, with its shares suffering their worst three-day slump in 25 years.

The escalating tariffs could add as much as $300 to the cost of producing an iPhone 16 Pro, potentially pushing the base model’s cost up from $550 to over $600. In contrast, India, currently subjected to a comparatively lower 26% tariff, would increase production costs by roughly $150, making it a more cost-effective alternative for Apple’s manufacturing needs.

India’s rising appeal comes not only from its lower tariffs but also as part of Apple’s long-term strategy to diversify its supply chain beyond China. The company is expected to manufacture 25 million iPhones in India in 2025, with nearly 10 million earmarked for the local market. The rest could supply up to half of the U.S. market, should Apple fully redirect Indian output to meet American demand.

In a short-term bid to cushion the impact of the tariffs, Apple recently flew five planeloads of iPhones and other devices from both China and India to U.S. warehouses. Meanwhile, CEO Tim Cook is reportedly attempting to negotiate a tariff exemption for Apple, as he successfully did during Trump’s first term.

Despite rising costs and political challenges, Apple’s transition to India is already underway. Approximately 14% of the company’s flagship devices were produced in India in 2024, as per Bloomberg. The company’s manufacturing partner, Foxconn, has also faced increasing operational costs in China, further pushing Apple to diversify its production hubs.

Beyond economic implications, the shift also plays into broader geopolitical dynamics. India and China remain locked in a longstanding rivalry, marked by territorial disputes, regional power competition, and strategic mistrust. India’s strengthening ties with the U.S. through platforms like the Quad further accentuate the growing divide.

For China, the potential loss of Apple—a marquee name in its manufacturing empire—could be a major setback, especially if its arch-rival India reaps the benefits. As Trump doubles down on tariffs and global supply chains realign, Apple’s India pivot signals a new chapter in the global tech and trade landscape.