New Delhi: ‘Make in India’ is a mantra as a global smartphone legend Apple and Samsung See to re -calibrate production worldwide to blunt the impact of Donald Trump’s high tariff on China and Vietnam when shipping in the US.
Even though it is a logical challenge with major rituals and other regulatory efforts, the issue is being addressed on an immediate basis to ensure that supply to the US remains competitive.
Also read: Exports in the form of firms to defeat Trump Tariff
The world’s largest electronics vendor, Apple, has begun to use production to ship iPhones in the US factories, with China plans to cut exports significantly. This decision is being taken as Trump has announced 26% mutual tariff on Indian exports to the US, while it is 54% for China, with 34% declared last week, and 46% for Vietnam.
“India’s factories will be used only to ship in the US. Demand in other markets like Europe, Latin America and even Asia will now be met by China factories. In a way, it will be a significant jump. IPhone production in India TOI told TOI that if Apple decides to stick to the formula that moves forward, it could lead to great expansion in the country.
ALSO READ: Stock-Up Buys Apple Time, may not soon pass on duties
Currently, iPhones in India are being built by units of Taiwanese Foxconn and Tata Group. The latter had acquired the assets of Vistron and Patron from Taiwan over the years. “If Apple does not go to develop all new production areas in the UAE and Saudi Arabia, or Brazil, then all – all of which have 10% tariffs – then there will be a significant expansion of capacity in India,” the official said.
Any such steps will see major investment by both Foxconn and Tatas, which can watch the iPhone shipment by growing largely from $ 10 billion this financial year. However, a lot will depend on the discussion between America with other countries.
In the case of Samsung, the case is as serious as the export of its manufacturing set-up in Vietnam is about $ 55 billion. “It would be better to ship with India at a duty of 26% than the export from Samsung Vietnam. While it would be a temporary measure until the Vietnamese government interacts with the US, it gives great importance to create in India,” the official said. Vietnam has proposed zero duty for American exports. The Samsung factory in Noida manufactures smartphones including S25 and folds.
Sources said that people interacting with the US on the bilateral trade agreement (BTA) are planned to be “aware of these dynamics” and to use them to extract maximum for India’s global manufacturing goals.
