News Desk
HONG KONG — Shipments of Apple’s iPhone and other smartphones manufactured in China and bound for the United States plummeted to their lowest levels since 2011 in April, a stark indicator of how escalating U.S. tariffs are reshaping global tech supply chains. Detailed customs data released Tuesday revealed a 72 percent collapse in smartphone exports, totaling just under $700 million, far outstripping a broader 21 percent decline in Chinese shipments to the U.S.
The nosedive reflects the intensifying impact of the Trump administration’s trade policies, which have imposed tariffs as high as 145 percent on Chinese goods. These measures, aimed at curbing reliance on Chinese manufacturing, have throttled the flow of high-value electronics between the world’s two largest economies. The ripple effects are pushing tech giants like Apple to diversify production, with India emerging as a bright spot in the global supply chain.
In contrast to China’s struggles, India has positioned itself as a burgeoning hub for electronics manufacturing. Over the past five years, India’s government, under Prime Minister Narendra Modi, has rolled out ambitious incentives to attract tech companies, including tax breaks and infrastructure investments. Apple, for instance, has significantly expanded its iPhone production in India, with factories in Tamil Nadu and Karnataka now assembling models for both domestic and global markets. In 2024, India accounted for nearly 20 percent of Apple’s global iPhone production, up from just 1 percent in 2018, according to industry estimates.
This shift is not merely a reaction to U.S. tariffs. India’s young, skilled workforce, coupled with a stable policy environment, has made it an attractive alternative to China, where rising labor costs, geopolitical tensions, and an increasingly assertive regulatory regime under President Xi Jinping have deterred foreign investment. Beijing’s stringent zero-Covid policies, which disrupted factories and ports for years, and its opaque data security laws have further eroded confidence among Western firms.
While China remains a critical player in global electronics—still producing over 80 percent of the world’s smartphones—its dominance is fraying. The U.S. tariffs, combined with China’s domestic challenges, have accelerated a broader decoupling of tech supply chains. Companies like Foxconn and Pegatron, major Apple suppliers, have invested billions in India, where production costs are estimated to be 10 to 15 percent lower than in China for certain components.
India’s rise is not without hurdles. Yet, New Delhi’s proactive reforms, including streamlined customs processes and investments in 5G networks, are steadily closing the gap. India’s democratic governance and alignment with Western interests also offer a geopolitical hedge against China’s authoritarian model, appealing to companies wary of Beijing’s tightening grip.
For global consumers, the implications are mixed. The shift to India could stabilize supply chains disrupted by U.S.-China trade frictions, potentially lowering prices in the long term. However, short-term disruptions, as seen in April’s export data, may lead to supply shortages and higher costs for smartphones and other electronics.
As the U.S. and China remain locked in a trade war, India’s ascent as a manufacturing powerhouse signals a broader realignment in global trade. While China grapples with the consequences of its economic policies and geopolitical isolation, India’s pragmatic approach is carving out a new role in the tech world—one that could redefine the global electronics market for years to come.
