Apple is taking drastic measures to combat President Donald Trump’s tariffs. The tech giant chartered cargo flights to ferry 600 tons of iPhones, or as many as 1.5 million, to the United States from India after it stepped up production there in an effort to beat Trump’s tariffs, sources told Reuters.
Apple “wanted to beat the tariff,” said one of the sources familiar with the planning.
Trump has gone on the offensive once again when it comes to tariffs against China. His latest announcement has been an unbelievable 125% hike in tariffs against China in retaliation for their reciprocal tariffs against the U.S. The rising tariffs could mean many companies that use manufacturing labour in China, like Apple will have to increase their prices. And since the iPhone is already expensive, the additional cost may deter customers from opting for their latest model.
However, reportedly, the tariff on imports from India is only 26% and it is now on hold after Trump called a 90-day pause this week that excludes China. This could mean that Apple may very well look to India in the future for a possible investment in manufacturing Iphones.
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Apple operations in India
Apple has significantly ramped up its manufacturing operations in India, making the country a crucial part of its global supply chain. As part of the Indian government’s “Make in India” initiative, Apple began assembling iPhones locally through contract manufacturers like Foxconn, Wistron, and Pegatron.
Initially focused on older models, local production now includes current-generation devices, such as the iPhone 15, with production often beginning in India almost simultaneously with China. This marks a major shift in Apple’s strategy to reduce dependency on China and diversify its manufacturing base.
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By 2023, India was producing over 7% of the world’s iPhones, with exports valued at more than $5 billion, making Apple one of India’s top smartphone exporters. Foxconn is also expanding its facilities and has announced new investments to increase capacity further.
Government incentives, including the Production-Linked Incentive (PLI) scheme, have played a key role in attracting Apple’s supply chain to India. Alongside smartphones, there are reports of Apple considering local assembly of iPads and AirPods in the near future.
Despite challenges such as logistics and workforce training, Apple’s growing manufacturing presence in India is creating jobs, boosting exports, and deepening its commitment to the Indian market.