As US Tariffs Hit Vietnam, Google Likely to Shift Pixel Production to India

Google’s parent company Alphabet Inc. is likely to shift major production of its Pixel smartphone to India from Vietnam. This strategic move comes in response to ongoing global trade tensions and new US tariffs introduced by President Donald Trump. Vietnam, which faced one of the steepest import duties of 46%, was significantly impacted. In contrast, India currently faces a lower tariff of 26% and holds the potential for a bilateral trade agreement with the US, making it a more favorable manufacturing hub.

According to an Economic Times report, Google has begun discussions with Indian electronics manufacturers like Dixon Technologies and Foxconn to facilitate this shift. The transition will initially cover Pixel units meant for the US market. Alphabet also plans to localize several key components, such as fingerprint sensors, chargers, batteries, and phone enclosures, which are currently imported for assembly in India.

India and the US are actively working on a trade agreement, expected to be finalized by September 2025, with a goal to double trade volumes to $500 billion by 2030. In a recent visit, US Vice President JD Vance and Prime Minister Narendra Modi welcomed the progress and emphasized the importance of stronger economic ties.

Currently, Foxconn and Dixon produce around 43,000 to 45,000 Pixel smartphones monthly for the Indian market. While Foxconn makes older models in Tamil Nadu, Dixon produces new models in Noida in collaboration with Compal Electronics.

Source: Financial Express