The apple has fallen from the tree. US technology giant Apple has lost its title as the world’s most valuable listed company, dethroned by another company in the same sector” Microsoft. In the space of a few days, Apple shares have lost more than 20% of their value, dragging its market capitalisation down to $2.6bn (€2.35bn), whilst Microsoft now has a valuation of more than $2.64bn.

What’s at fault? The Trump administration, which has chosen to raise its voice against Beijing. Washington on Wednesday imposed customs duties of 104% on products from China, in a trade offensive designed to encourage American companies to relocate their production to the United States.

The problem is that Apple assembles the overwhelming majority of its iPhones in China. According to Dan Ives, an expert at investment firm Wedbush Securities, such a move would push up the price of an iPhone to $3,500 (around €3,170), a price that is incompatible with the consumer market. The operation would also be extremely costly: Apple would have to invest nearly $30bn to repatriate just 10% of its supply chain.

Faced with this impasse, the group headed by Tim Cook is stepping up its efforts to diversify geographically. India appears to be the main alternative. The manufacturer is considering importing large quantities of iPhones manufactured there, where customs duties are limited to 27%. It’s a circumvention strategy still in its infancy, but one that reflects a profound reconfiguration of global value chains.

This article was originally published in .