Trade war: Foxconn ready to support Apple if it needs to make iPhones outside China

Apple Inc has a backup plan if the US-China trade war gets out of hand.

The Cupertino, California-based company’s primary manufacturing partner has enough capacity to make all iPhones bound for the US outside of China if necessary, according to a senior executive at Hon Hai Precision Industry Co.

The Taiwanese contract manufacturer now makes most of the smartphones in the Chinese mainland.

China is a crucial cog in Apple’s business, the origin of most of its iPhones and iPads, as well as its largest international market. But President Donald Trump has threatened Beijing with new tariffs on about $300 billion worth of Chinese goods, an act that would escalate tensions dramatically while levying a punitive tax on Apple’s most profitable product.