This is an excerpt from a story delivered exclusively to Business Insider Intelligence Connectivity & Tech subscribers.

US and China trade tensions are boiling and have already spilled over to the smartphone market.

Last month, when the US more than doubled tariffs on $200 billion of Chinese goods, China retaliated by taking $60 billion worth of US goods that previously had tariffs of 5-10% and placing those items into four new tariff groups: 25%, 20%, 10%, and 5%, according to The New York Times.

Companies involved in the smartphone market are not immune from the effects of this retaliation.

Here's what it means: The escalating trade war could lead major phone brands like Apple to shift their centers of production.

Foxconn, Apple's biggest iPhone manufacturer, said it could move all production of US-bound iPhones out of China if needed.

The text above is a summary, you can read full article here.