Apple Makes Major Move to Avoid Tariffs
Earlier this week, Donald Trump announced sweeping import tariffs that will impact nearly every industry across the country. And before the tariffs took effect, Apple made a pretty significant move to avoid the impacts of those tariffs this week.
This week, Indian officials confirmed to The Times of India that Apple transported five planes full of Apple products into the United States in order to avoid the new tariff, which was slated to take effect on Wednesday, April 9, at 12:01 a.m.
"Apple transported five planes full of iPhones and other products from India to the US in just three days during the final week of March, a senior Indian officials confirmed to The Times of India. The urgent shipments were made to avoid a new 10% reciprocal tariff imposed by US President Donald Trump's administration that took effect on April 5. Sources said that Apple currently has no plans to increase retail prices in India or other markets despite the tariffs," the outlet reported on Tuesday.
By bringing a massive amount of product into the country ahead of the tariffs, Apple will be able to mitigate the effects of the tariffs for at least a short time, until they exhaust their current inventory and the five planes full of product that they brought into the United States ahead of the tariffs.
If the tariffs do turn out to be a long-term policy of the current administration, The Times of India points out that this could mean that Apple will move even more of its production to India, considering India's tariff rate is lower than China's, where much of Apple's production is currently.
"Currently focused on iPhone and AirPod production in India, Apple essentially stands to benefit from a tariff advantage, with Indian exports facing a 26% reciprocal tariff to the US compared to the 54% levied on Chinese goods," the outlet points out.
"This substantial 28-percentage-point difference creates compelling economic incentives for Apple to accelerate its manufacturing transition to India. The company already accounts for most of India's nearly $9 billion in smartphone exports to the US, though production shifts will likely depend on final US tariff terms with various countries."
For now, however, Apple is likely hoping that the five planes of products brought into the United States will help limit the impacts of the tariffs.