Yahoo Finance’s Brian Sozzi spoke with former Cisco (CSCO) CEO John Chambers, who is no stranger to global supply chains as one of the first tech CEOs to have gear made in China in the 1990s.

Chambers contends that Apple (AAPL) could profitably make iPhones in the United States if it wanted to, as businesses consider rerouting supply chains amid escalating US-China tensions and tariffs.

“The answer is yes, yes, and yes,” Chambers said on whether Apple CEO Tim Cook could move production from China to the US.

Currently, the US’s 145% tariff rate on goods from China and a 10% baseline rate on all other countries are in effect. The Trump administration carved out an exemption for smartphones from the China tariffs, a win for Apple that’s reminiscent of the reprieve it received from Trump during his first term in office.

More than 75% of the world’s iPhones are produced in China. In early April, Apple flew five planes worth of iPhones in three days to the US in anticipation of tariffs.

Chambers noted that in addition to making iPhones in the US, investors will see major corporations like Apple get closer to key allies to resolve the tariff issues. Chambers called out India, in particular, as a trading partner to watch.

“If you look at the most strategic partnership to the US over this next decade, it will be India,” Chambers said. “So I think you will see iPhones being made in India, less in China, and you’ll see iPhones being made in the US and strike the balance on it.”

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