**India**: Google is exploring relocating Pixel smartphone manufacturing from Vietnam to India to benefit from lower US import tariffs amid ongoing trade tensions, engaging with Foxconn and Dixon Technologies to source components locally and adjust supply chains in response to potential tariff reinstatements and new semiconductor duties.
US technology giant Google is reportedly planning to shift the production of its Pixel smartphones from Vietnam to India, as part of ongoing efforts to navigate the complex landscape of international tariffs. This move comes despite the current 90-day pause on certain reciprocal tariffs between the US and other countries, reflecting broader concerns over potential tariff reinstatements and new semiconductor import duties.
According to a report from The Economic Times, Google has engaged in discussions with its manufacturing partners Foxconn and Dixon Technologies to explore relocating some Pixel handset production to India. The talks also include arrangements for sourcing components such as chargers, fingerprint sensors, batteries, and phone enclosures locally within India, as at present, the majority of these components for Pixels assembled in India are imported.
This strategic move is primarily influenced by the different tariff rates applied to imports from Vietnam and India into the US. Currently, a 46% reciprocal tariff on Vietnamese exports to America is paused, while the corresponding tariff on Indian imports is 26%. Should these tariffs be reinstated after the pause period, manufacturing Pixels in India would mean a significantly lower import tax burden for Google compared to continued production in Vietnam.
The rationale behind Google’s consideration of this production mechanism shift aligns with similar moves by other technology companies responding to the uncertainty surrounding US trade policy, particularly the baseline tariffs of approximately 10% imposed on a broad range of goods. These companies are actively seeking to adjust their supply chains to minimise tariff impacts, including the anticipated new tariffs on semiconductors.
Industry analysts note that companies like Google might face the choice of either absorbing these increased costs or passing them onto consumers through higher product prices in the US market. The exact outcome for Google’s Pixel pricing strategy remains to be seen, pending the evolving trade environment and final government decisions on tariffs.
This development underscores the ongoing adjustments within the global technology supply ecosystem as firms respond to swiftly changing trade policies. The full implications for Google’s manufacturing footprint and cost structures will become clearer in the coming months as the tariff situation unfolds.
Source: Noah Wire Services
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