Google is taking major steps to avoid high tariffs amid US-initiated trade wars, moving a significant portion of its Pixel production to India.
According to a report by The Economic Times, Alphabet has been in talks with Foxconn and Dixon Technologies to shift a significant portion of Pixel production from Vietnam to India, especially for smartphones bound for the US.
The Trump administration has announced sweep “reciprocal tariffs” on rivals and allies alike, although the exact tariff rate varies from one country to the other. Vietnam was one of the countries with a higher tariff rate, with the administration say it plans to impose a 46% tariff on the country. In contrast, India will face a 26% tariff. It’s worth noting that the Trump administration put a 90-day hold on all tariffs, but the rollout has been so chaotic that companies are struggling to know how to plan for the future.
It appears Google doesn’t want to take any changes, and is planning to move forward by rebasing a significant portion of its manufacturing to India, with its lower potential tariff rate. The outlet’s sources said the company will also look at other countries for potential manufacturing solutions.
Google’s decision underscores the challenges US companies face in the face of tariffs, as there are countless products manufactured overseas that cannot easily be manufactures in US anytime soon. This is especially true in the computer and electronics industry, where the US simply lacks the infrastructure needed to meet companies’ manufacturing needs.
While the Trump administration is trying to force companies to bring manufacturing back to the States, that process will a be a years-long endeavor, and certainly not something that will happen in time for companies to build and deliver their next models and devices.