An Apple’s key supplier has succeeded that he could shift some products to the US and other countries in order to avoid the 104% tariff burden of President Trump in China.
Luxhare, a Chinese firm that collects the iPhone and makes Airpods, will also reconsider some planned investments in China while playing Trump’s trading war, said President Wang Laichun during a long call with analysts on Wednesday.
“If there is a trading guarantee and we are able to make a good rating, we do not finish some localized products to meet the needs of the US market,” Wang said, according to a transcript received from Reuters.
Apple’s shares have been under pressure in recent days because Trump’s tariffs are especially harmful to its supply chain.
Tim Cook’s firm makes most of its equipment in China, including its flag iPhone.
Trump has also taxed 46% tariffs in Vietnam and 26% Tariffs in India – two of the other major Apple production centers.
Vietnam is one of the countries that has opened negotiations with the Trump administration to address fees.
Apple, meanwhile, is reportedly considering the relocation of more products in India to avoid the highest levels of tariffs in China.
Wang did not specifically refer to Apple during her words. In addition to China, Luxshare has facilities in SH.BA, Mexico, Vietnam, Thailand and Malaysia.
The Luxhare boss said it would take time for more production to come online to other countries up to a half years even in places where there are already production plants.
Wang also weighed the chances of clients to look for better deals as the cost of products increases due to tariffs.
“Customers have always collaborated with suppliers on how to improve competition,” she said.
In general, Wang said tariffs are unlikely to have a major impact on Luxhare profits because the firm does not export many products completed directly to the US
Apple did not immediately return the post for commentary request.
It is unclear if Apple will rise prices for customers as a result of the expected increase in its production costs – what some have reported have clashed to improve their iPhone just to be safe.
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