US President Donald Trump has imposed “reciprocal tariff” rates on more than 180 countries, including India and Vietnam. Despite efforts to diversify its supply chain beyond China, Apple is still significantly impacted due to the tariffs.
China remains Apple’s largest manufacturing hub, with around 80% of production capacity. However, the company aims to increase production in India and Vietnam. The US tariffs on these countries could reduce their competitiveness. India will face a 26% tariff, while Vietnam’s rate is 46%. China will face a 54% tariff, making it one of the most heavily taxed countries.
Apple has made significant investments in India, targeting around 25% of global iPhone production for the country. However, estimates suggest that only 10-15% of iPhones are currently assembled there. Vietnam has emerged as a popular manufacturing hub and accounts for 20% of iPad production and 90% of Apple Watch assembly.
Other countries affected by tariffs include Malaysia (25%), Thailand (36%), and South Korea, Japan, Taiwan, and the US. Despite these challenges, Apple continues to invest in its global supply chain, including a new factory in Texas for artificial intelligence servers.
Source: https://www.cnbc.com/2025/04/03/apple-iphone-production-in-china-india-in-focus-after-trump-tariffs.html