Apple Plans to Temporarily Ship iPhones to US From India in Effort to Avoid Trump's Tariffs

Apple is planning to source more iPhones from India in an attempt to avoid the high tariffs President Donald Trump has imposed on China, according to an article in The Wall Street Journal. The reported shift to India, with which China has a close and often hostile rivalry, could be a double blow to the Asian economic giant whose decades-long dominance in manufacturing Apple's flagship iPhone may be coming to an end.

Apple is ramping up efforts to ship more iPhones to the United States from India in a bid to cushion the impact of steep new tariffs on Chinese goods imposed by President Donald Trump, The Wall Street Journal reported, citing sources familiar with the matter. The move is a short-term strategy while the company seeks an exemption from the tariffs. For now, Apple sees the landscape as too volatile to warrant major changes to its global supply chain. Trump’s renewed tariff package slaps at least a 54% duty on Chinese goods and a 26% rate on imports from India. A $300 hike could be added to the current $550 hardware cost of an iPhone 16 Pro, per estimates by TechInsights cited in the news report. The model currently retails for $1,100.

The adjustments are a short-term stopgap while Apple attempts to win an exemption from President Trump’s tariffs—which Chief Executive Tim Cook obtained during the first Trump administration. The company sees the current situation as too uncertain to upend long-term investments in its supply chain, which is centered around China, the people said. Trump’s new tariff package raises levies on Chinese goods to at least 54% while imposing a 26% rate on Indian goods. On Monday, Trump threatened to add to China tariffs if the country doesn’t remove the retaliatory duties they announced after U.S. tariff plans were revealed on April 2.