Apple’s suppliers could move production of the billion-selling device out of China if America’s trade war with the country intensifies, supplier Foxconn has revealed.
Tariffs of up to 25% come into force at the end of June.
Foxconn, which makes many of the components inside Apple’s device said that it could move production out of China.
A member of the Taiwanese firm’s proposed new board said, ‘Twenty-five percent of our production capacity is outside of China, and we can help Apple respond to its needs in the U.S. market.’
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The comments come as U.S. President Donald Trump has threatened to slap further tariffs on $300 billion worth of goods from China – where the bulk of Apple’s devices are assembled.
The country is also a key market for the firm.
Liu added that if Apple needs, Foxconn could adjust its production lines accordingly.
Liu was speaking at Foxconn’s first investor conference in Taipei, where the company also said it was well positioned to tackle the ‘increasingly tough’ trade war situation with its production lines across 16 countries.
The trade war ‘will have some impact, but it will be limited,’ Liu said.