WASHINGTON: In a bid to cushion the blow from potentially higher tariffs on Chinese imports, Apple has accelerated its production roadmap in India, a source familiar with the matter told Reuters. The company is currently in high-level talks with its key manufacturing partners—Foxconn and Tata—to boost output from India.

Apple sells over 60 million iPhones annually in the United States, with nearly 80% currently made in China. By the end of 2026, Apple intends to flip that equation by making India its primary production base for the American market.

The urgency behind this shift comes as Apple shipped a record 600 tons of iPhones worth $2 billion from India to the U.S. in March alone. Of that, Foxconn was responsible for $1.3 billion worth, highlighting the growing capacity and significance of Indian production lines.

This pivot is not just about avoiding tariffs—though that is a key factor. In April, while China faced duties over 100%, imports from India were only hit with a 26% tariff. Washington has since paused most duties for three months, except for China, further incentivizing Apple’s shift.

India’s rising role in Apple’s global supply chain comes amid a broader strategy to reduce dependency on China and de-risk operations. Foxconn and Tata, Apple’s main suppliers in India, already operate three factories with two more under construction, reinforcing the country’s emerging status as a manufacturing powerhouse.