Apple rushed iPhone shipments from India, China to dodge US' tariffs

The tech company reportedly shipped inventory from India and China to the US in late March to avoid the reciprocal tariff imposed by the Trump administration

Tech giant Apple shipped five planeloads of iPhones and other products from India to the United States within three days during the last week of March, reported The Times of India citing a senior government official. The company expedited the shipments to avoid a 10 per cent reciprocal tariff imposed by US President Donald Trump last week.

 

According to the report, Apple does not plan to increase retail prices in India or other markets despite the new tariff. In a bid to minimise the impact, the company quickly moved inventory from its manufacturing centres in India and China to the US, even though this period typically sees slower shipments.

 

 

“Factories in India, China, and other key locations had been shipping products to the US in anticipation of the higher tariffs,” a source said to The Times of India.  Also Read: Nova Reel AI by Amazon now generates 2-min videos using text, image inputs

Apple stockpiles to delay global price hike

Apple has reportedly stocked its US warehouses with reserves sufficient for several months, which will enable the company to temporarily maintain current pricing.

 

“The reserves imported at lower duty will offer short-term protection from the higher costs Apple will incur on new shipments under the revised tax rates. 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 told The Times of India.

 

Apple is evaluating how varying tariff structures across manufacturing hubs could impact its supply chain. With the US being a key market for Apple products, the company is aiming to shield consumers from cost increases that could dampen demand and erode profit margins.  Also Read: Soon, WhatsApp will prevent exporting chats, saving media automatically

India gains as Apple shifts production

Apple is currently focused on iPhone and AirPod production in India, and stands to benefit from a tariff advantage. Indian exports to the US will face a 26 per cent tariff, significantly lower than the 54 per cent imposed on Chinese goods. This 28-percentage-point differential offers strong economic incentives for Apple to fast-track its manufacturing shift to India.

 

On Monday, Trump threatened to add to China tariffs if the country didn’t remove the retaliatory duties they announced after reciprocal tariffs were announced by the US on April 3 (Indian Standard Time). According to various media reports, Apple plans to send more iPhones to the US from India to offset the high cost of China tariffs. Reports say Apple is seeking an exemption from the tariffs imposed by President Trump, an exemption that chief executive officer Tim Cook secured during the first Trump administration.