Apple plans to shift the assembly of all iPhones sold in the U.S. to India as early as next year, pivoting away from China to avoid steep tariffs, the Financial Times reported, citing people familiar with the matter.

Apple is squarely in the middle of the U.S.-China trade war but it has a plan to avoid a sharp increase in the cost of iPhones. The chief executives of both Verizon Communications and AT&T warned this week that they would pass on any increase in handset prices resulting from tariffs to consumers—a potential blow to Apple,