Some 52% of manufacturing exporters plan to move or are considering moving some production overseas, down from June 2025 (63%) and the peak level in 2024 (71%). Trade tension de-escalation may have been at play. In addition, the softer intention to move out may also reflect the notable progress in China's supply chain shifts over the past few years, as more than 60% of respondents already have an average 40-50% of production overseas. Mainland China's current weighted average additional US tariff rates are ...

Core Insights - Apple's iPhone exports from India to the US increased by 76% in April, reaching approximately 3 million units, as the company seeks to avoid tariffs on Chinese imports [1][2] - In contrast, shipments from China fell by about 76% to just 900,000 units [2] - The shift to India has drawn criticism from both the US and Chinese governments, with President Trump insisting that iPhones sold in the US should be manufactured domestically [3][9] Manufacturing and Supply Chain - Apple's suppliers in India face challenges accessing high-tech machinery and talent from China, which may hinder production capabilities [4] - A complete transition to US manufacturing is deemed unlikely, with estimates suggesting it could take 5 to 10 years and significantly increase iPhone prices to around $3,500 [4][5] - Foxconn, a key Apple supplier, has announced a $1.5 billion investment in an Indian facility, indicating a commitment to expanding production in the region [4] Market Demand and Capacity - The US demand for iPhones is estimated at 20 million units per quarter, while India's manufacturing capacity is not expected to meet this demand until 2026 [8][11] - Despite growth in India, momentum is expected to slow down for the remainder of the year [5] - Apple's iPhones produced in India still face a baseline tariff rate of 10% imposed by the US [11]