The U.S. tariffs have dropped several shipments from China to America, including Apple iPhone and other mobile devices. Their export rating to the U.S. in April hit the lowest level since 2011.
According to data on Tuesday, Chinese shipments to the U.S. last month fell by 21%. However, smartphone exports have dropped by 72% to below $700 million. This turn of event has shown how much the U.S. 145% tariff on Chinese goods affects the market.
Still, Apple may have alternative options to avoid this difficulty. The first option, which the company currently commits to, is to shift its manufacturing to India, Apple’s second biggest iPhone production base. Still. U.S. President Donald Trump is not pleased with this practice.
The second option is to move back home. One of Trump’s goals for imposing several tariffs is to revive American manufacturing. However, Apple never produced its device back in the U.S. and without basic foundation, this option may be impracticable for some time.
In addition, the investors also worried about the trade war’s effect on the U.S. – China bilateral trade, which in 2024 had a value of $690 billion. Although both nations began a trade negotiation, the tension is still high as recently, the U.S. issued a sanction on Huawei’s AI chips.
