Google could be moving Pixel manufacturing to India to avoid high tariffs

What you need to know

• Google is reportedly exploring a move for Pixel production from Vietnam to India.
• It is also claimed to be interested in localizing certain Pixel components, like enclosures or fingerprint sensors, to Indian manufacturing plants.
• The move is said to be related to the ongoing U.S. tariff situation, which is expected to levy higher charges on goods imported from Vietnam than India.

The U.S. is currently exploring tariffs under the Trump administration that would directly impact products imported to the country, and the uncertain situation may be pushing Google to ramp up Pixel manufacturing in India. Google is reportedly considering moving the production of Pixel phone components from Vietnam to India to thwart potentially-major tariffs, according to The Economic Times.

The report claims that Google is in talks with Dixon Technologies and Foxconn to move parts of Pixel production to India, “especially devices headed for the U.S.” The news comes via two industry executives who spoke to The Economic Times, saying that discussions started about two weeks ago. These talks would be the first step in transitioning parts of Pixel production from Vietnam to India, which could be a large undertaking.

However, there appears to be major financial incentive for Google and its partners to make a move. While goods imported to the U.S. from Vietnam — where most Pixel phone production takes place — are subject to a 46% tariff, those imported from India are only subject to a 26% tariff. It’s worth noting that both tariffs, called reciprocal tariffs, are currently paused for 90 days and are not in effect.

The situation is currently ongoing and subject to change, with Indian Prime Minister Narendra Modi meeting with U.S. Vice President JD Vance as recently as yesterday, April 21, attempting to reach a trade deal that avoids reciprocal tariffs. Indian Finance Minister Nirmala Sitharaman said that India hopes to reach a trade deal with the U.S. by this fall, according to Reuters. The U.S. is the country’s largest trading partner.

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