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Recently, market rumors suggested that iPhone assembly plants in China had halted operations starting April 9 due to the impact of Trump’s trade war. However, according to Economic Daily News, production lines in China are currently operating normally.
As the report notes, the two major iPhone assembly plants in China are operated by Foxconn and Luxshare. Meanwhile, Foxconn’s plant in India has recently been rushing to produce and ship iPhones to the U.S. due to a surge in urgent orders. As the largest iPhone manufacturer in India, Foxconn is expected to benefit from this increase in India-based production, as indicated by the report.
Apple and HP Reassess Supply Chains Amid Export Disruptions
While iPhone production lines in China have not been suspended, a MoneyDJ report, citing Nikkei, states that major American PC brands—including Apple and Dell—have reportedly suspended exports from China to the U.S.
A person familiar with operations at Foxconn’s Chengdu plant indicated that exports of PCs to the U.S. have been temporarily halted. Apple is reportedly considering shifting exports to alternative sites such as India. As the report highlights, around 30–40% of the products manufactured at the Chengdu facility are exported to the U.S., and the pause in exports has resulted in lower utilization rates.
As for HP, the company outsources PC production in China to companies like Taiwan’s Quanta. As cited in the report, a senior executive at the company’s Chongqing plant revealed that the factory halted exports to North America in early April—and the suspension is likely to be extended.
The report notes that Quanta has reduced the volume of PCs it manufactures for HP in China. An employee at Quanta’s Chongqing plant indicated that some production lines have already been shut down, and staffing levels have been reduced accordingly, as the report highlights.
Tariff Relief for Electronics Products, but Risks of New Duties Remain
As reported by CNN, the administration of U.S. President Donald Trump announced an exemption for smartphones, computers, and certain other electronic devices from the 145% “reciprocal” tariffs on Chinese imports. However, the report notes that these products are still subject to a separate 20% tariff on Chinese goods.
The administration also stated that it would conduct a national security review of semiconductor imports—referred to as a Section 232 study—which could pave the way for another round of tariffs specifically targeting electronic products, as indicated by CNN.
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(Photo credit: Apple)
