The signals of movement
The tariff war between the US and China is still raging and the consequences for the world economy are difficult to predict. US President Donald Trump has recently softened his tone towards Beijing, but the future is still ahead. Some major corporations in the world have shown signs of changing strategies.
According to FT , Apple plans to move all iPhone assembly for the US market to India as early as 2026 as part of a strategy to diversify its supply chain after more than two decades of heavy investment in China. Apple aims to double iPhone production in India, with more than 60 million iPhones sold each year in the US.
Although the parties involved have not confirmed it, the US tech giant has been gradually building up its manufacturing capacity in India over the past few years.
Information about Apple's relocation plan was released in the context that the total tax rate imposed by the US on Chinese goods is 145%, including the 20% previously imposed and 125% in the reciprocal tax package.
Meanwhile, the US reciprocal tariff rate for India is 26%. Mr. Trump is also suspending plans to impose reciprocal tariffs for 90 days on all trading partners, except China.
Previously, on February 24, Apple announced a $500 billion investment plan in the US over the next four years, with the goal of creating job opportunities and developing advanced technology infrastructure in the world's number one power. The statement was made after a meeting between Apple CEO Tim Cook and US President Donald Trump at the White House.
One of the key projects in Apple's investment strategy is a partnership with Foxconn to build a facility to assemble servers for Apple Intelligence's data centers in Houston.
In addition, Apple has also begun mass-producing its own chips at a factory in Arizona. This is a move in support of the CHIPS Act, which aims to promote domestic semiconductor production and reduce dependence on global supply chains, especially in the context of increasingly fierce US-China technology competition.
Apple also plans to buy from US suppliers, opening a manufacturing academy in Michigan - which will provide courses for small and medium-sized manufacturing companies, helping them improve production processes and project management.
A wave of displacement, what will the world be like?
According to CNBC , Dutch automotive group Stellantis announced that it will restart its assembly plant in Illinois (USA) and announced investments in factories in Ohio, Indiana and Michigan.
German pharmaceutical company Merck expects a $200 million impact from Trump's new tariffs and is moving some production back to the US to reduce the risk.
Merck opened a $1 billion manufacturing facility in North Carolina on March 11 amid Trump’s threat to impose a 25 percent tariff on pharmaceutical imports. Merck plans to invest a total of $8 billion in the U.S. by 2028.
Recently, US-based Eli Lilly announced plans to invest at least $27 billion to build four new factories in the US. Pfizer also said it could move overseas production to existing factories in the US.
Faced with rising supply chain costs due to tariffs, retailers such as Walmart, Target, Lowe's and Home Depot are shifting from China to other countries, including India... to reduce risks and maintain competitive prices.
In the context of the increasingly important Indian market, many large Chinese corporations have also “completely changed their attitude”. Chinese home appliance giant Haier has made many strategic adjustments to consolidate its position and promote growth in this country.
According to Indiatimes , Haier is negotiating to sell 51-55% stake in its Indian operations (Haier Appliances India) to a domestic partner, instead of considering selling only 26% and keeping a controlling stake in the joint venture as previously.
Haier is also looking for locations to build additional factories in southern India to serve domestic and export markets.
In addition, in the context of the US-China trade war and new tariffs, Haier is increasing localization in international markets (such as the US and Europe) to reduce dependence on production in China.
Also according to Indiatimes, Chinese electrical equipment and power generation manufacturer Shanghai Highly has restored its joint venture with Voltas (owned by Tata), accepting a low stake because it does not want to lose its business in India.
Previously, Apple's major component manufacturer Foxconn also diversified its investments to other countries to meet the needs of its partners.
China's major electric vehicle maker BYD is moving production to Southeast Asia to avoid US tariffs, such as opening a factory in Thailand...
It can be seen that the tariff war between the world's two largest economies is posing many risks not only to bilateral trade but also to the global supply chain. China - once considered the "world's factory" - is witnessing a shift in capital flows and production activities to other countries.
Although US President Donald Trump has recently expressed optimism about improving trade relations with China, he has yet to take any concrete action. In a speech on April 26, Mr. Trump affirmed that he would not lift tariffs unless China “offered something substantial” in return, while demanding that Beijing open up trade.
The 145% tariff that the US has imposed on Chinese goods is having far-reaching effects on businesses operating in China.
According to the Wall Street Journal , the Trump administration is considering cutting tariffs by more than half in some cases, but has not made a final decision. US Treasury Secretary Scott Bessent also admitted that the current stalemate is “difficult to maintain in the long term,” but he only predicted that tensions could “cool down” without making specific commitments. This makes observers skeptical about the possibility of a breakthrough in the short term.
China has also been cautious. A Chinese Foreign Ministry spokesman stressed that trade and tariff wars “have no winners.” Meanwhile, many Chinese experts have warned that Mr. Trump’s “soft” statements may be just words.
Source: https://vietnamnet.vn/ong-trump-100-ngay-nam-quyen-mot-lan-song-dich-chuyen-dang-dien-ra-2396156.html
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