Trade war: Suppliers will shift iPhone output from China if tariffs hit 25%

iPhones have so far been spared in a tit-for-tat trade war

Apple Inc.’s suppliers will keep making iPhones in China if the U.S. imposes tariffs on the devices -- unless those levies skyrocket.

Suppliers figure they can keep production in China at a 10 percent tariff level but will consider shifting out of the country if the U.S. moves to 25 percent, according to people familiar with the matter. Apple and its partners are assessing their supply chains as the U.S. and China fight over trade terms between the world’s two largest economies.

iPhones -- the majority of which are made by assembly partner Hon Hai Precision Industry Co. in China and shipped