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Apple (AAPL-0.39%) iPhone exports from China to the U.S. dropped sharply last month, a casualty of the ongoing trade war between the world’s largest economies.
Bloomberg reported Tuesday that Chinese shipments of iPhones plunged 72% in April to $700 million, the lowest level since 2011. Smartphones and laptops comprise the largest share of U.S. imports from China.
The U.S. and China are locked in a trade war that led to both nations to slap triple-digit tariffs on each other at one point. The Trump administration, though, dialed back its import taxes in order to restart trade talks with Beijing in hopes of securing a sweeping deal.
Still, such an agreement doesn’t seem close. The Chinese government accused the U.S. of undercutting trade negotiations on Monday after the Commerce Department issued an industry warning singling out Huawei semiconductors.
Around 90% of the Apple iPhone is assembled in China, CNBC reported. For its part, Apple is attempting to quickly shift its production capacity to India over the next few years with the goal of producing 25% of its iPhones there.
“The majority of iPhones sold in the U.S. will have India as their country of origin,” Apple CEO Tim Cook said during an earnings call earlier this month. In February, Apple announced it would invest $500 billion in the U.S. over the next four years and expand its facilities to include a new factory in Texas.
President Trump has prodded Cook to move Apple factories to the U.S. “He’s going to be building a lot of plants in the United States for Apple,” Trump said earlier this month. “And we look forward to that.”
Analysts, though, have casted doubt on that outcome as it might cause the iPhone’s retail price to at least double due to higher labor costs.