Apple is Dodging Trump’s Tariffs by Shipping iPhones from India to the US, Company Reveals

Apple is reportedly launching ferry iPhone cargo flights from its manufacturing plants in India to the US in order to counter Donald Trump’s tariffs.

Since March, the tech giant has transported 600 tonnes of iPhones, equivalent to 1.5 million mobile phones, from India after ramping up production at its local factories, as reported by Reuters.

Following President Trump’s call for a 90-day suspension and the pending 26% threatened tariffs on Indian imports, Apple faces the pressure of escalating tariffs on goods from China, where most iPhones are assembled, to a rate of 125%.

A source familiar with Apple’s strategy revealed to Reuters that the company’s objective is to evade tariffs. While India incurs import taxes based on Trump’s actions, it imposes a 10% tax rate.

Analysts caution that iPhone prices could soar after the US imposes hefty tariffs on Chinese imports, with estimates suggesting that the iPhone 16 Pro Max with 256GB storage could see a price increase from $1,199 (£925) to over $2,000.

Reports indicate that Apple aimed for a 20% production boost at its iPhone facility in India, achieved by scaling up the workforce and extending operations at Foxconn’s largest factory in Chennai over the weekends.

The Chennai factory, which churned out 20 million iPhones last year, including the latest models, is part of Apple’s trio of manufacturing plants in India operated by Foxconn and Tata.

This week, the Wall Street Journal reported that Apple planned a temporary surge in iPhone shipments from India to the US to navigate through a “short-term suspension,” while also trying to secure a tariff waiver in China. If all iPhones made in India are redirected to the US, they would meet about half of the US demand this year, according to US Bank analyst Wamsi Mohan.

Experts caution that relocating iPhone production to the US is financially impractical due to factors like labor costs, with analysts at Wedbush Securities indicating a price tag of $3,500 for a domestically manufactured iPhone.

In a note to investors this week, WedBush analyst Dan Ives stated, “If consumers want a $3,500 iPhone, they need to make them in New Jersey, Texas, or another state.”

Apple has been reached for comment.