Apple has chosen to expand its production in India and Vietnam rather than the United States despite tariff pressures from the U.S. government. Apple’s decision highlights the company’s strategy to diversify its supply chain in response to the ongoing U.S.-China trade dispute. While U.S. President Donald Trump has encouraged companies to bring manufacturing back to the U.S., Apple has opted for India and Vietnam due to their cost-effectiveness and labour availability. Apple reported strong financial results for the second quarter of its fiscal year on May 1, 2025, with sales of $95.36 billion and operating profits of $29.59 billion, surpassing market expectations. CEO Tim Cook noted that the company had managed to minimize the impact of tariffs by optimizing its inventory and supply chain, even amid rising tariff costs. However, Apple also warned that it expects an additional cost of approximately $900 million due to tariffs in the upcoming quarter. In response to tariff pressure, Apple has shifted much of its production to India and Vietnam, with most iPhones sold in the U.S. now being produced in India, and iPads, Macs, Apple Watches, and AirPods made in Vietnam. Despite these efforts, Apple continues to rely on China for most of its global supply chain. Apple’s decision to avoid large-scale manufacturing in the U.S. is influenced by high labour costs, the lack of skilled workers, and infrastructure challenges. Apple has also taken steps to localize some production in the U.S., such as sourcing chips from U.S. states and working with American companies for iPhone glass. However, due to the ongoing tariffs between India, Vietnam, and the U.S., Apple remains exposed to the potential risks of reciprocal tariffs. Following the earnings announcement, Apple’s stock rose 0.39% during regular trading but fell over 3% in after-hours trading, signalling investor concerns about future tariff impacts on the company’s profitability.