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A key Apple supplier has suggested it could shift some production to the US and other countries in order to dodge the brunt of President Trump’s 104% tariffs on China.
Luxshare, a Chinese firm that assembles iPhones and makes AirPods, will also reconsider some planned investments in China as Trump’s trade war plays out, chairwoman Wang Laichun said during a lengthy call with analysts on Wednesday.
“If there is a commercial guarantee and we are able to conduct a good evaluation, we do not rule out having some products being localized to meet the needs of the US market,” Wang said, according to a transcript obtained by Reuters.
Apple shares have been under pressure in recent days because Trump’s tariffs are particularly damaging for its supply chain.
Tim Cook’s firm makes the vast majority of its hardware in China, including its flagship iPhones.
Trump has also imposed 46% tariffs on Vietnam and 26% tariffs on India – two of Apple’s other key production hubs.
Vietnam is one of the countries that has opened negotiations with the Trump administration to address the tariffs.
Meanwhile, Apple is reportedly considering shifting more production to India to avoid the higher tariff levels in China.
Wang did not specifically refer to Apple during her remarks. Aside from China, Luxshare has facilities in the US, Mexico, Vietnam, Thailand and Malaysia.
The Luxshare boss said it would take time for more production to come online in other countries – up to one-and-a-half years even in places where it already has manufacturing plants.
Wang also weighed in on the likelihood that customers will search for better deals as the cost of products rise because of tariffs.
“Customers have always collaborated with suppliers on how to enhance competitiveness,” she said.
Overall, Wang said the tariffs were unlikely to have a major impact on Luxshare’s profits because the firm doesn’t export many finished products directly to the US.
Apple did not immediately return The Post’s request for comment.
It’s unclear if Apple will hike prices for customers as a result of the expected increase in its manufacturing costs – though some have reportedly scrambled to upgrade their iPhones just to be safe.
