EU-China trade war: Apple evaluates moving part of its production to Mexico

In the midst of the trade war between Washington and Beijing, Apple considers Mexico and other Southeast Asian countries to move from 15 to 30% of its production.

The technological giant Apple is looking to Mexico and other Southeast Asian countries to move up to 30% of its production from China in the middle of the trade war between Washington and Beijing, reported the Nikkei Asian Review .

Anonymous sources told the newspaper that the Californian company asked its large suppliers to evaluate the costs and implications of moving production capacity from 15% to 30%.

According to the Nikkei Asian Review, Apple approached this initiative due to tariffs ordered by President Donald Trump to merchandise valued at more than 250,000 million dollars, which could increase to 500,000 million dollars.

However, even if an agreement is reached, the company would continue with this initiative due to the risks of entrusting so much production percentage in China.

The countries considered for this diversification include Mexico, India, Vietnam, Indonesia and Malaysia, but the favorites for the production of cell phones are India and Vietnam.

The sources said that changing the place of production would take time, so there is no estimated date, and China is likely to remain the most important manufacturing base for the company.

Information from the company quoted by the Nikkei Asian Review points out that some 5 million Chinese jobs depend on Apple’s presence in the country and that 10,000 people work directly for Apple.

Source: Nikkei Asian Review

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