Apple's high-flying tactic to dodge Trump's tariff trap
Apple has chartered cargo flights to transport 600,000 kilograms of iPhones from India to the United States. This strategy aims to bypass the high tariffs imposed by the Donald Trump administration.
According to Reuters, Apple decided to hire cargo planes to transport its equipment from India to the United States. Over 600,000 kilograms of iPhones will be transported to the U.S. to avoid tariffs imposed by U.S. 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 with a capacity of 100,000 kilograms. According to data, only 20% of iPhones imported into the U.S. come from India, with the rest coming from China. The American company aims to minimize costs and is attempting 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 U.S. has significantly risen. In January, this value was $770 million (CAD 1 billion), and in February, $643 (CAD 898) million, which marks a significant increase compared to previous months.
The trade war between the U.S. 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 U.S. will be about $3,500 (CAD 4900), while by the end of 2024, the average iPhone price was $1,018 (CAD 1,451).
