Luxshare, a key supplier for Apple, is contemplating relocating some of its production outside China, potentially to the United States, in response to tariffs imposed during the Trump administration.

Ultimately, the success of Luxshare's production plans will largely depend on the future of tariffs and the U.S. government's trade policies.

Wang emphasized that any U.S. investment would hinge on commercial guarantees and long-term development considerations, particularly for products requiring high levels of automation.

This announcement comes amid heightened trade tensions, particularly following the implementation of a 104% tariff on Chinese goods, which has raised concerns about economic implications.

The tariffs have pressured Apple's stock and significantly impacted its supply chain, as the company relies heavily on Chinese manufacturing for most of its products, including iPhones.

She indicated that localization of production for the U.S. market could be feasible if favorable evaluations and commercial guarantees are secured.

Manufacturing Apple devices in the U.S. presents challenges, as evidenced by Apple's previous experiences with production during Trump's first term.

During a recent analyst call, Luxshare's chairwoman, Wang Laichun, revealed that the company is exploring the establishment of factories in the U.S. amidst ongoing trade tensions.

Despite the discussions, analysts suggest that Luxshare's comments lack a concrete plan for U.S. investment, interpreting them as vague promises rather than a definitive strategy.

Wang noted that while tariffs have a limited short-term impact on Luxshare's profits, the company is reassessing its global investment strategy to mitigate future trade risks.

As one of Apple's key suppliers, any significant changes in Luxshare's production strategy could have ripple effects on Apple's supply chain and product pricing.

Analysts warn that shifting production to the U.S. could encounter challenges, including higher labor costs and the complexities of setting up domestic manufacturing operations.