How Apple Airlifted iPhones from India, China to Beat Trump's Tariffs

In order to beat the new deadlines for tariffs, Apple pulled off a rapid and well-planned logistics move: sending five cargo planes filled with iPhones and other products from India and China to the United States. Its aim was straightforward: beat a new 10% reciprocal tariff that the Trump administration was about to impose, starting on April 5. Senior Indian officials say that the operation and others like it allowed Apple to load up US warehouses with tariff-free merchandise before the government dropped the hammer.

These shipments, which are generally unusual for what is typically a slow season, were part of a broader move to manage price stability and ensure product availability in the US market, which is by far Apple’s biggest and most important one.

The anticipation of a tariff can throw a curveball into this straight line of economic logic, and so Apple, like some other companies, has decided that the best way to deal with the uncertainty sewn by the Trump administration is to move stock early.

Stockpiling Strategy to Maintain Price Stability

Apple has created a buffer by pushing inventory into the U.S. ahead of the tariff deadline. In the face of the new import tax, the company is able to sell at its ongoing price points and avoid the tax man, at least for several months, depending on how quickly the sold-in products sell through.

It is reported that the company has no plan for now to hike prices in India or in other markets. But if the tariffs stay put or go up, that may end up pushing costs higher in Apple’s global supply chain, including here in India. When that happens, Apple will have to reckon with the question of whether to absorb the costs or to pass them along to consumers.

India Emerges as a Key Player in Apple’s Supply Chain

The strategic importance of India to Apple is increasing rapidly. As the US progresses with a 26% reciprocal tariff, set to take effect on April 9, on imports from various countries, Apple's products made in India face much lower duties than comparable items made in China. Under US law, exports to America from India are currently subject to the 26% tariff, while goods made by Apple in China face a punishing 54% rate.

This 28 percentage point benefit upholds India's place as a secure and cost-effective manufacturing base. Apple, which already makes iPhones and AirPods in India, may now hasten plans to diversify its supply chain by making more gadgets in the subcontinent.