Google might be shifting Pixel manufacturing to India to keep away from excessive tariffs

What it’s essential to know

• Google is reportedly exploring a transfer for Pixel manufacturing from Vietnam to India.
• It is usually claimed to be involved in localizing sure Pixel parts, like enclosures or fingerprint sensors, to Indian manufacturing crops.
• The transfer is claimed to be associated to the continuing U.S. tariff scenario, which is predicted to levy increased prices on items imported from Vietnam than India.

The U.S. is at the moment exploring tariffs beneath the Trump administration that may immediately impression merchandise imported to the nation, and the unsure scenario could also be pushing Google to ramp up Pixel manufacturing in India. Google is reportedly contemplating shifting the manufacturing of Pixel telephone parts from Vietnam to India to thwart potentially-major tariffs, based on The Financial Occasions.

The report claims that Google is in talks with Dixon Applied sciences and Foxconn to maneuver elements of Pixel manufacturing to India, “particularly units headed for the U.S.” The information comes by way of two trade executives who spoke to The Financial Occasions, saying that discussions began about two weeks in the past. These talks can be step one in transitioning elements of Pixel manufacturing from Vietnam to India, which might be a big endeavor.

Nevertheless, there seems to be main monetary incentive for Google and its companions to make a transfer. Whereas items imported to the U.S. from Vietnam — the place most Pixel telephone manufacturing takes place — are topic to a 46% tariff, these imported from India are solely topic to a 26% tariff. It is price noting that each tariffs, referred to as reciprocal tariffs, are at the moment paused for 90 days and will not be in impact.

The scenario is at the moment ongoing and topic to alter, with Indian Prime Minister Narendra Modi assembly with U.S. Vice President JD Vance as just lately as yesterday, April 21, trying to succeed in a commerce deal that avoids reciprocal tariffs. Indian Finance Minister Nirmala Sitharaman stated that India hopes to succeed in a commerce take care of the U.S. by this fall, based on Reuters. The U.S. is the nation’s largest buying and selling accomplice.