Apple airlifts more than 1 million iPhones out of India to avoid Trump tariffs, Reuters reports
Apple is making moves to ensure that its iPhones remain affordable for U.S. customers amidst the threat of tariffs that could lead to price hikes. According to Reuters, the tech giant has shipped about 1.5 million iPhones, weighing roughly 600 tons, from India to the U.S. by air to beat potential tariffs imposed by President Trump.
In an effort to mitigate the impact of tariffs on Chinese imports, Apple has been ramping up iPhone production in India, where levies are significantly lower. The company has added workers to its main factory in India and extended shifts to increase production by 20%. While most iPhones are still made in China, Apple’s expansion in India is a strategic move to diversify its manufacturing base.
President Trump recently announced a 27% tariff on India, which was later paused for 90 days along with import taxes on other countries. However, a reciprocal tariff of 125% on China remains in effect. To avoid the impact of tariffs, Apple chartered cargo flights to transport the iPhones to the U.S. and lobbied Indian airport authorities to reduce customs clearance time.
With the possibility of tariffs driving up prices, Apple store workers have reported strong consumer demand for iPhones before potential price hikes take effect. Data from UBS Investment Research suggests that a 125% tariff on Chinese imports could increase the retail cost of an iPhone 16 Pro Max 256 GB by as much as 67%. Research from Wedbush Securities highlights the importance of global trade in maintaining affordable consumer electronics prices in the U.S.
As Apple takes proactive measures to navigate the impact of tariffs, it remains to be seen how the ongoing trade negotiations will shape the future of iPhone prices for American consumers.
