By Anthony Marcus for Eurasia Business News, April 10, 2025. Article no.1480.
Apple has recently airlifted 600 tons of iPhones from India to the United States, which translates to about 1.5 million devices. This strategic move is aimed at avoiding the high tariffs imposed by the U.S. on imports from China, which have been increased to 125% by President Donald Trump. Now tariffs on China hit 145%. In contrast, imports from India face a significantly lower tariff rate of 26%, although this is currently on hold for 90 days following a pause announced by Trump, excluding China.
Tariff Avoidance: The primary goal was to circumvent the steep tariffs on Chinese imports, which could significantly increase iPhone prices in the U.S. For instance, the iPhone 16 Pro Max could see a price jump from $1,599 to around $2,300 under the 125% tariff rate.
Production Increase: Apple increased production in India by 20% to meet demand, adding more workers and extending production hours at its manufacturing partners like Foxconn and Tata.
Logistical Arrangements: Apple used chartered cargo flights to transport the iPhones from Chennai, India. The company also implemented a “green corridor” at the Chennai airport to expedite customs clearance, reducing the process from 30 hours to just six hours. Apple collaborated with Indian airport officials to streamline the customs process. This involved lobbying for expedited clearance procedures, which were supported by Prime Minister Narendra Modi’s government.
Destination: Most of the shipments were delivered to major U.S. cities, including Chicago, Los Angeles, New York, and San Francisco.
This move reflects Apple’s broader strategy to diversify its manufacturing base beyond China and mitigate the impact of trade tensions on its operations.
Trump said today while discussing his tariff policies that he expects “there’ll be a transition cost and transition problems.”
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© Copyright 2025 – Eurasia Business News. Article no. 1480.
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