To Avoid Trump’s Tariffs, Apple Ships iPhones to the U.S. from India via Cargo Planes

To avoid tariffs imposed by the 47th U.S. President Donald Trump, Apple has started shipping iPhones from India to the United States via cargo flights. This was reported by British media outlet The Guardian on Thursday (April 10).

According to the report, since March, Apple has transported nearly 600 metric tons of iPhones (around 1.5 million units) from its manufacturing hubs in India to the U.S. via air cargo.

Although the Trump administration has threatened to impose a 26% tariff on goods imported from India, the implementation has been deferred for 90 days. Meanwhile, the U.S. has already imposed a steep 125% tariff on products imported from China—where most iPhones are assembled.

Sources say Apple is rushing to ship products before the tariffs take effect. Under Trump’s tariff policy, goods from India would face only a 10% tariff—much lower than China’s rate. Taking advantage of this, Apple is ramping up production in India and using fast shipping methods.

In fact, a "green corridor" system—similar to what Apple uses at some Chinese airports—has been set up at Chennai airport in India to facilitate the expedited process.

Reports indicate that Apple negotiated with local airport authorities to reduce customs clearance time at Chennai Airport from 30 hours to just 6 hours to ensure rapid delivery to the U.S. before the tariff deadline.

Analysts warn that the steep tariffs on Chinese imports could lead to a sharp rise in iPhone prices in the U.S.

According to UBS Investment Bank, the price of a 256GB iPhone 16 Pro Max could rise from $1,199 (£925) to nearly $2,000—an increase of about 60%—if Apple passes on the tariff burden to consumers.

Meanwhile, British news agency Reuters reported that Apple aims to increase production in its Indian factories by 20%. Efforts are underway at the largest Foxconn factory in Chennai to hire more workers and maintain consistent output to meet the target.

Last year, the Chennai facility produced 20 million iPhones, including the latest iPhone 15 and 16 models. Apple operates three factories in India, managed by Foxconn and Tata.

According to The Wall Street Journal, Apple is planning to ship even more India-made iPhones to the U.S. as a “temporary solution” while it seeks tariff exemptions for Chinese imports.

Bank of America analyst Wamsi Mohan noted that if Apple shifts all India-made iPhones to the U.S., it could meet about 50% of American demand this year.

However, analysts also point out that moving iPhone production to the U.S. would be extremely costly due to significantly higher labor and operational costs.

Dan Ives, Head of Tech Research at Wedbush Securities, warned that if iPhones were made in the U.S., the price could rise to around $3,500 (up from the current $1,000).

Previously, Donald Trump claimed in his “Liberation Day” speech that his global tariff policy would boost job growth and manufacturing in U.S. factories. However, critics argue that such policies would raise prices on everything from clothing to electronics, putting additional pressure on American consumers.

They also described Trump’s plan as a "fantasy story" and "foolish" from an economic standpoint.

Why Would iPhone Prices Increase? iPhone production in Asia is highly complex and cost-efficient. Moving the entire supply chain to the U.S. would require around $30 billion and at least 3 years (just to shift 10% of production). Even if fabrication plants are built in West Virginia or New Jersey, costs would skyrocket.

The Trump administration claims this policy will bring electronics manufacturing jobs back to the U.S.

But analysts say labor and production costs in the U.S. are far higher than in Asia, which would significantly raise product prices. As Ives put it: “This is just an economic dream—one that is very hard to turn into reality.”