Google is reportedly considering relocating its Pixel phone manufacturing from Vietnam to India. This potential shift aims to navigate the complex tariff landscape affecting imports to the U.S. According to sources, Google is looking into localizing various Pixel components, such as enclosures and fingerprint sensors, within Indian manufacturing facilities.
This decision comes as U.S. tariffs aimed at products entering from Vietnam might impose steeper costs compared to those from India. Under the former Trump administration, the U.S. examined tariffs that would directly impact goods from Vietnam, leading Google to accelerate its manufacturing plans in India. The Economic Times reports that Google is in discussions with companies like Dixon Technologies and Foxconn to facilitate this move, particularly for devices destined for the U.S. market.
These talks began approximately two weeks ago, marking a significant step toward transitioning Pixel production. Financial considerations heavily influence this strategy. Tariffs on imports from Vietnam stand at 46%, whereas those from India are only 26%.
While these tariffs are currently suspended for a temporary 90-day period, the looming possibility of reinstatement adds urgency to Google’s plans. Additionally, Indian Prime Minister Narendra Modi met with U.S. Vice President JD Vance to discuss potential trade agreements that might mitigate these tariffs, with hopes for a resolution by fall. Given that the U.S. is India’s largest trading partner, aligning production in India could prove beneficial for Google.
Despite these plans, current Pixel phones made in India still mainly rely on components imported from abroad. Thus, Google’s efforts to establish more localized production could significantly enhance cost efficiencies and supply chain resilience moving forward.