How Apple Airlifted iPhones from India and China in 5 Flights Over 3 Days to Dodge Trump Tariffs
Pre-empting new tariffs that the US will impose, Apple speedily lifted iPhones and other items to keep prices at par for consumers. The motto behind this strategic movement is to protect the consumers from future costs and still maintain demand.
How Apple Airlifted iPhones from India and China in 5 Flights Over 3 Days to Dodge Trump Tariffs
As confirmed by an Indian senior official to The Times of India, March-end saw five aircraft flying from India to the US, carrying iPhones and other products over a three-day period. The emergency shipments were done to pre-empt a new 10% reciprocal tariff imposed by the US President Donald Trump administration which came into effect on April 5. Apple has no immediate plans to raise retail prices in India or other markets despite the tariffs, sources said.
To reduce the effect, the company quickly shifted stock from production hubs in India and China to the US, despite this time being a lean shipping season.
"India and China and other strategic base locations had things on the way to the United States in the event that tariffs were raised," one source said.
"The source stated that "the lower-dutied arrivals will offer the firm temporary relief from higher costs that will have to be incurred for future shipments as per the new taxation rates."
How India stands Out as Apple’s Most Secure Option for iPhone manufacturing
Donald Trump administration also declared 26% reciprocal tariffs, which will be applied from April 9, and might make Apple's manufacturing strategy different in the future. India is going to be more significant for Apple's global supply chain as the company moves greater manufacturing from China.
With respect to iPhone and AirPod production in India, Apple has in effect a tariff advantage. Indian exports attract a 26% reciprocal tariff to the US, whereas Chinese products face a 54% tariff.
This large 28-percentage-point gap makes strong economic incentives for Apple to step up its manufacturing shift to India. Apple already commands the majority of India's nearly $9 billion in Smartphone exports to the U.S.; however, the shifts in production will hinge on the final U.S. tariff regime applicable to other countries.
