In a bid to avoid new tariffs imposed by the US government, Apple has transported five planes full of iPhones and other products from India to the US. The shipment, which included approximately 1.5 million iPhones, was made in just three days during the final week of March.
Strategic Move to Mitigate Tariff Impact
The tech giant’s decision to airlift products from India comes as a strategic move to stockpile inventory in the US ahead of the new tariffs taking effect. With a 10% baseline tariff on all imports into the US, and additional duties ranging from 26% on Indian goods to 125% on Chinese imports, Apple aims to minimize the impact on its supply chain and prices.
How Apple Achieved the Feat
To facilitate the massive shipment, Apple reportedly lobbied Indian airport authorities to reduce customs clearance time at Chennai airport from 30 hours to 6 hours. This “green corridor” arrangement enabled the company to swiftly transport 600 tons of iPhones and other products to the US.
Impact on Apple’s Supply Chain
The new tariffs could significantly affect Apple’s supply chain, particularly for products manufactured in China. While Apple has been expanding its production capacity in India, the company still relies heavily on China for manufacturing iPhones and other devices. The tariffs may lead to increased costs and prices for Apple’s products in the US market ¹ ².
Temporary Relief?
In a surprising move, US President Donald Trump announced a 90-day pause on the “reciprocal tariffs” except for the 10% base tariff. However, this pause does not apply to China, where Apple has its largest manufacturing plant. The development has brought temporary relief to companies like Apple, but the long-term impact of the tariffs remains uncertain ¹.
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