Avoiding the Tariff Trap: Apple Ships iPhones from India to Avoid US Tariffs

In a strategic move, Apple shipped its five planes full of iphones and other products from India to the US. As per the new report, the decision came immediately after US President Donald Trump imposed a new tax tariff on India as well as other Asian countries. Donald Trump has imposed a new 10% reciprocal tariff which took effect on 5 April 2025. Apple’s swift action of shifting its products is aimed in order to mitigate the impact of this tax imposition.

Here’s Everything We Know So Far About Tax Imposition and Its Effect on Smartphone Market in India:

The Apple’s urgency to shift their shipments underscores their proactive approach so that the company could navigate the complex landscape of international trade policies. The decision of accelerating deliveries ahead of the tariff implementation, the tech giant is trying to maintain the stable retail price for its products in the US market. The decision might be a temporary solution, but in long term, this needs to find a permanent space.

As per source, “The reserves that arrived at lower duty will temporarily insulate the company from the higher prices that it will need to pay for new shipments under the revised tax rates.”

What is US New Tariff System?

Under the International Emergency Economic Powers Act of 1977 (IEEPA), Donald Trump has imposed several tariffs on countries with which the United States has the largest trade deficits. Under the policy, the US President has listed some countries that lie under the US trade deficit including India, China, European Union, Mexico, and More.

Apple is expanding its footprint in India after the launch of the iPhone 16 line up including iPhone 16 Pro and iPhone 16 Pro Max. But if the global production cost goes up, then the tech giant will have to adjust the pricing to maintain the profitability. This could mean that Indian consumers might end up paying more for the iPhone.

The source further mentions, “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.”

Apple relies heavily on China and Vietnam for their supply chains and under the tariff system the cost of flagship and premium smartphones could witness the rise in their cost. Additionally, Apple is also contemplating a broader shift in its supply chain strategy. This is a short term measure to offset the high costs associated with the new tariff imposition. This move also highlights that Apple is now diversifying its manufacturing locations and reducing dependence or reliance on any single country. The tech giant is certainly enhancing its resilience against geopolitical and economic uncertainties.