US-China trade war crushes smartphone exports with 72% April plunge
Trade tensions between the US and China have hit smartphone exports hard. Chinese shipments to America plunged by 72% in April, reaching their lowest level since 2011. The tech sector has become the main battleground in a wider economic dispute. Last year, smartphones were among the top imports from China to the US, alongside laptops and lithium-ion batteries. But rising tariffs—some as high as 145%—have turned once-profitable trade routes into financial risks for manufacturers. Apple’s iPhones, a major part of this trade, have never been made in the US, despite calls from former President Trump to bring production home.
The overall drop in Chinese exports to the US stood at 21% in April. Smartphone shipments alone fell to just US$700 million, a figure not seen in over a decade. As a result, Apple has begun shifting production away from China to avoid trade barriers.
India has emerged as the biggest winner from this shift. Imports of smartphone components from China to India have quadrupled in the past year. Meanwhile, Beijing accused Washington of sabotaging Geneva trade talks by imposing new sanctions on Huawei’s AI chips.
The US-China trade relationship, worth US$690 billion, now faces growing strain. Key American exports—such as liquid petroleum gas, oil, soybeans, gas turbines, and semiconductor equipment—remain caught in the crossfire. The steep decline in smartphone trade marks the sharpest drop since records began. Companies like Apple are now spreading production across different countries to reduce risks. With tariffs still high and tensions unresolved, the tech industry continues to navigate an uncertain future.
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