TechApple navigates trump tariffs with India-to-USA iPhone flights

Apple navigates trump tariffs with India-to-USA iPhone flights

Apple has chartered cargo flights to transport 1,323,000 pounds of iPhones from India to the USA. This strategy aims to avoid the high tariffs imposed by the Trump administration.

Apple navigates trump tariffs with India-to-USA iPhone flights
Images source: © Getty Images | NurPhoto

According to Reuters, Apple decided to hire cargo planes to transport its equipment from India to the United States. Over 1,323,000 pounds of iPhones will be transported to America to avoid tariffs imposed by US President Donald Trump. The duty on imported goods from China is 125%, whereas from India it is only 26%, which has been suspended for 90 days.

Apple is trying to avoid tariff costs

Since March, six cargo planes have flown out of India with Apple products, each capable of carrying 220,000 pounds. According to data, only 20% of iPhones imported into the USA come from India, with the rest coming from China. The American company aims to minimize costs and is trying to bypass the tariffs this way.

Production at the Foxconn factory, which manufactures iPhones, has increased, and the value of shipments from India to the USA has significantly risen. In January, this value was $770 million, and in February, it was $643 million, showing a significant increase compared to previous months.

The trade war between the USA and China

The Trump administration introduced tariffs to encourage American companies to invest domestically. However, relocating supply chains could lead to increased iPhone prices. Analyst Dan Ives from Wedbush Securities predicts that the cost of a new iPhone manufactured in the USA would be about $3,500, while by the end of 2024, the average iPhone price was $1,018.

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