FT News Briefing US tariffs bite Chinese industry
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Apr 25, 2025 Apple is shifting its iPhone assembly to India, responding to U.S. tariffs that are crippling Chinese factories. Manufacturing slowdowns in China are leading to worker furloughs and order cancellations. Meanwhile, Alphabet's profits soar by 46%, showing resilience amid economic challenges. The Trump administration's push to eliminate paper cheques raises questions about payment methods in the U.S., balancing the convenience of digital payments with traditional practices.
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Apple Shifts iPhone Assembly to India
- Apple plans to move all iPhone assembly for the US market to India by the end of next year to avoid US tariffs on China.
- This shift requires ramping up India's production capacity to meet US demand despite relying on Chinese suppliers earlier in the supply chain.
Chinese Factories Hit by Tariffs
- Chinese factories producing goods for the US are slowing production and furloughing workers due to tariffs.
- Many factories face closure if the trade war continues despite local governments' efforts to help exporters.
Current State of US-China Tariffs
- US tariffs on Chinese products average 145%, with large carve-outs for electronics, while China retaliates with 125% tariffs.
- Both sides signal potential moves to lower tariffs but negotiations stall as China demands unilateral US tariff removal first.