Apple’s $500 Billion US Investment Comes Amid Rising India Tariff Threats

India-West News Desk

CUPERTINO, CA – Apple’s recent announcement to invest $500 billion in the U.S. and create 20,000 jobs comes at a critical moment for the company. With President Donald Trump reiterating his stance on imposing steep tariffs on Chinese imports and considering reciprocal tariffs on India, Apple’s global supply chain faces new challenges. These developments could force the tech giant to rethink its manufacturing strategy.

Historically, Apple has relied heavily on China for assembling most of its products, but the company has increasingly turned to India as an alternative production hub. Trump’s renewed threat to impose a 10 percent levy on Chinese goods jeopardizes Apple’s reliance on China, particularly for iPhone assembly and key components. During Trump’s first term, Apple successfully secured waivers on some tariffs targeting Chinese imports, but the looming tariffs could reignite concerns over cost increases and disruptions to Apple’s supply chain.

At the same time, India has emerged as a growing manufacturing base for Apple, with the company seeking to diversify its production to reduce dependency on China. However, India is not immune to the risk of reciprocal tariffs, and with rising production costs, Apple could be pushed to accelerate its plans for domestic manufacturing in the U.S.

To mitigate these risks, Apple’s new investment includes plans to build a 250,000-square-foot facility in Texas by 2026 focused on AI server manufacturing. Additionally, Apple is working on establishing a supplier academy in Michigan and increasing spending with U.S.-based suppliers. These moves align with Trump’s push for domestic manufacturing but also highlight the significant challenges of shifting production away from China and India. China offers well-established supply chains, a skilled workforce, and extensive infrastructure that supports Apple’s operations, while India has become a crucial part of the company’s manufacturing strategy.

Despite the growing emphasis on U.S. production, scaling up operations in the U.S. to replace China and India entirely remains a costly and time-consuming challenge. Apple’s recent decisions suggest a hedging strategy: maintaining investments in China and India while expanding U.S. manufacturing as a safeguard against tariffs.