A major Apple supplier, Luxshare, is weighing a move to shift some of its production out of China and into the U.S. or other countries, in response to President Trump’s sweeping 104% tariffs on Chinese imports.

Luxshare—best known for assembling iPhones and producing AirPods—is now rethinking its long-term strategy as Trump’s trade crackdown escalates. During a call with analysts Wednesday, Chairwoman Wang Laichun revealed the company may halt planned investments in China and instead explore options to localize production for the U.S. market.

“If there is a commercial guarantee and we are able to conduct a good evaluation, we do not rule out having some products being localized to meet the needs of the U.S. market,” Wang said, according to a transcript obtained by Reuters.

The remarks underscore how Trump’s tariff regime is reshaping global supply chains, pressuring multinational firms to bring manufacturing closer to American consumers or risk steep penalties.

If Luxshare follows through, it could mark a major win for Trump’s America First trade policy, signaling that even deep-rooted Chinese manufacturing giants are feeling the heat—and adjusting to keep access to the U.S. market.