How Apple 'flew' 5 flights full of iPhones from India and China in 3 days to beat Trump Tariffs

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Anticipating new tariffs imposed by the US, Apple swiftly transported iPhones and other products from India to the US to maintain current pricing. This strategic move aims to shield consumers from increased costs and protect demand.

Apple transported five planes full of iPhones and other products from India to the US in just three days during the final week of March, a senior Indian officials confirmed to The Times of India. The urgent shipments were made to avoid a new 10% reciprocal tariff imposed by US President Donald Trump’s administration that took effect on April 5. Sources said that Apple currently has no plans to increase retail prices in India or other markets despite the tariffs.

To mitigate the impact, the company rapidly moved inventory from manufacturing centres in India and China to the US, even though this period is typically a slow shipping season.

“Factories in India and China and other key locations had been shipping products to the US in anticipation of the higher tariffs,” according to one source.

This stockpiling will allow Apple to maintain current pricing temporarily, the report added.

“The reserves that arrived at lower duty will temporarily insulate the company from the higher prices that it will need to pay for new shipments under the revised tax rates,” the source explained. Apple’s US warehouses are reportedly stocked for several months ahead.

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“Any price hike to offset this impact cannot be limited to just the US market, but will have to be taken across key global regions, including India,” the source noted. The company is analysing how different tariff structures across manufacturing locations will affect its supply chain.

The US remains a crucial market for Apple products, and the company is working to avoid transferring increased costs to consumers, which could impact both demand and profit margins.

Trump adminsitrtion also announced 26% reciprocal tariffs that will be implemented on April 9, which may influence Apple’s manufacturing strategy going forward. India is likely to play an increasingly important role in Apple’s global production network as the company shifts more manufacturing away from China.

Currently focused on iPhone and AirPod production in India, Apple essentially stands to benefit from a tariff advantage, with Indian exports facing a 26% reciprocal tariff to the US compared to the 54% levied on Chinese goods.

This substantial 28-percentage-point difference creates compelling economic incentives for Apple to accelerate its manufacturing transition to India. The company already accounts for most of India’s nearly $9 billion in smartphone exports to the US, though production shifts will likely depend on final US tariff terms with various countries.

Recently, a report by The Wall Street Journal says that the US may also source more iPhones from India as it aims to reduce the impact of Trump tariffs.

Fearing steep iPhone price hikes due to new US tariffs on Chinese goods, many Americans are also rushing to upgrade their iPhones, anticipating costs could nearly double once the tariffs take effect.

TOI Tech Desk

The TOI Tech Desk is a dedicated team of journalists committed to delivering the latest and most relevant news from the world of technology to readers of The Times of India. TOI Tech Desk’s news coverage spans a wide spectrum across gadget launches, gadget reviews, trends, in-depth analysis, exclusive reports and breaking stories that impact technology and the digital universe. Be it how-tos or the latest happenings in AI, cybersecurity, personal gadgets, platforms like WhatsApp, Instagram, Facebook and more; TOI Tech Desk brings the news with accuracy and authenticity.Read More

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