Apple rushes to rescue iPhones before reciprocal tariffs take effect

The Times of India quoted an Indian official as saying that Apple had flown five flights full of iPhones and its products in just the last three days of March.

This move by the “bitten Apple” is aimed at avoiding the 10% reciprocal tax imposed by the administration of US President Donald Trump. Sources said Apple has no plans to increase retail prices in India or other markets despite the new tariffs.

Apple rushes iPhone shipments from manufacturing hubs in India and China to the US to avoid tariffs

To mitigate the impact of tariffs, Apple has been moving inventory from its manufacturing hubs in India and China to the U.S. The stockpiling of iPhones will help the company maintain current prices in the meantime. Apple warehouses are reportedly stockpiling products for the coming months.

The source noted that price increases to offset the cost of tariffs will not be limited to the U.S., but will also be in other key markets, including India. Apple is analyzing how tax structures in different manufacturing locations will impact its supply chain.

The US remains an important market for Apple, which does not want to pass on the cost burden to consumers because it would impact demand and profit margins.

In addition to the basic tax rate of 10%, the US also imposes a reciprocal tax of 26% on goods imported from India, while Chinese goods are subject to a total tax rate of up to 54%.

Not to mention, on April 7, Mr. Trump also threatened to impose an additional 50% tax on China from April 9 if the mainland did not make concessions and withdraw retaliatory tariffs, raising the total tax rate to 104%.

The 28% difference could provide an incentive for Apple to increase production in India. The iPhone accounts for the bulk of India’s smartphone exports to the US.

Source: https://baoquocte.vn/apple-voi-va-giai-cuu-iphone-truoc-khi-thue-doi-ung-co-hieu-luc-310455.html