Apple may have kicked off the year with stronger-than-expected profits, but it’s bracing for a massive $900 million hit thanks to U.S. tariffs shaking up its global supply chain. CEO Tim Cook revealed that while the impact has been limited so far, future tariff changes could seriously bump up costs. To dodge potential disruptions, Apple is shifting gears — and production — to India. Cook even stated that most iPhones sold in the U.S. will soon have “Made in India” labels as Apple reduces its dependence on China amid an ongoing U.S. China trade showdown. With retaliatory tariffs flying back and forth, Apple is playing it smart by building inventory in advance and diversifying its manufacturing hubs. Though China still leads in iPhone production, India is quickly catching up and it might just be Apple’s new manufacturing powerhouse.